Suppose the Bank of England Is Using a Managed Floating

question 38

Multiple Choice

Suppose the Bank of England is using a managed floating exchange regime.In order to keep money supply constant the Bank of England exchanges domestic bonds for foreign bonds to slow any appreciation of the pound while keeping the British money supply unchanged.This process is known as:

• A) Sterilized intervention
• B) The monetary approach
• C) Exchange rate intervention
• D) Balancing official settlements.

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Single Table

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