An Unsterilized Intervention in Which a Central Bank Sells Domestic

question 34

Multiple Choice

An unsterilized intervention in which a central bank sells domestic currency to buy foreign assets will lead to:

• A) an increase in foreign reserves
• B) a decrease in domestic money supply
• C) an appreciation of domestic currency
• D) All of the above are correct.

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Definitions:

Routine Request

A standard or common inquiry or demand, often part of regular business or administrative procedures.

Being Specific

The quality of being clear and precise in communication or description, avoiding vagueness or ambiguity.

Emailing A Vendor

The act of sending an electronic message to a supplier or service provider for business-related purposes, such as inquiries or orders.

Ship Date

The scheduled date on which a product is supposed to be dispatched or shipped to a customer.