CMO tranches are structured to create long, intermediate and short-term securities

Optimal capital structure "first" criteria suggests that SHAREHOLDER CONTROL should be ________ and that the best way to obtain that is with ________ levels of debt and ________ levels of equity

A) high; high; low B) low; low, high C) low; high; low D) high; low; high

Because sterilized interventions mean offsetting open market operations, there is no impact on the monetary base and the money supply, and therefore a sterilized intervention

A) causes the exchange rate to overshoot in the short run. B) causes the exchange rate to undershoot in the short run. C) causes the exchange rate to depreciate in the short run, but has no effect on the exchange rate in the long run. D) has no effect on the exchange rate.