How does a sterilized intervention by the Fed in foreign exchange market differ from an unsterilized intervention?

What will be an ideal response?

Unlike an unsterilized intervention, a sterilized intervention is a foreign exchange intervention is accompanied by offsetting domestic open market operations that leave the monetary base unchanged.

Economics

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When conducting open market operations, at what price is it willing to buy or sell securities?

A) at the price agreed upon by the Federal Open Market Committee B) at the price agreed upon by the Board of Governors C) at the price set by the Fed chair D) at whatever price is necessary to carry out its open market operations

Economics

Positive incentives do not: a. increase benefits

b. result in an increased level of the related activity. c. reduce costs. d. discourage consumption.

Economics