Central banks intervene directly in foreign exchange markets by buying and selling ________

When a country's currency depreciates

A) foreigners find that its exports are more expensive, and domestic residents find that imports from abroad are more expensive. B) foreigners find that its exports are more expensive, and domestic residents find that imports from abroad are cheaper. C) foreigners find that its exports are cheaper; however, domestic residents are not affected. D) foreigners are not affected, but domestic residents find that imports from abroad are more expensive. E) foreigners find that its exports are cheaper and domestic residents find that imports from abroad are more expensive.

When the Fed buys U.S. government securities from a member bank, that bank's excess reserves, required reserves, and total reserves all increase

a. True b. False Indicate whether the statement is true or false