An unsterilized foreign-exchange intervention occurs
A) whenever a central bank purchases or sells domestic currency.
B) whenever a central bank purchases or sells foreign currency.
C) whenever a central bank allows the monetary base to respond to the sale or purchase of domestic currency.
D) whenever a central bank fails to reduce its holdings of gold by the amount of a foreign-exchange purchase.
C
You might also like to view...
The Solow residual helps explain growth that derives from
a. increasing the size of the labor force. b. increasing the size of the capital stock. c. increasing the capital-labor ratio. d. anything except increases in the size of the labor force or the capital stock.
The absolute price elasticity of demand for a product that has many good substitutes is probably
A) less than 1. B) greater than 1. C) equal to 1. D) infinity.