The Use of Domestic Open Market Operations to Counteract the Effects

question 128

Multiple Choice

The use of domestic open market operations to counteract the effects of a foreign exchange market intervention on the domestic money supply is known as:

• A)normalization.
• B)quantitative easing.
• C)sterilization.
• D)volatilization.
• E)depreciation.

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Definitions:

Post-closing Trial Balance

A list of all company accounts that remain after adjusting entries and closing entries have been made, used to test the balance of debits and credits.

Asset Accounts

Accounts on a balance sheet representing resources owned or controlled by a company with future economic value.

Liability Accounts

Accounts that represent amounts owed to creditors or bills that must be paid in the future, contributing to a company’s liabilities on the balance sheet.

Post-closing Trial Balance

A list of all company accounts that remain after adjusting and closing entries are made, used to ensure debits equal credits.