25. A foreign exchange intervention in which a central bank allows the purchase

Question

25. A foreign exchange intervention in which a central bank allows the purchase or sale
of domestic currency to have an effect on the monetary base and hence on the money
supply is called a(n): (Points : 3)        sterilized foreign exchange intervention
       unsterilized foreign exchange intervention
       securitized foreign exchange intervention
       unsecuritized foreign exchange intervention
       real darn shame Question 26.26. A central bank sale of ________ to purchase _________ in the foreign exchange
market results in an equal rise in its international reserves and the monetary base. (Points : 3)        foreign assets, domestic currency
       foreign assets, foreign currency
       domestic currency, foreign assets
       domestic currency, T-bills 25. A foreign exchange intervention in which a central bank allows the purchase or sale
of domestic currency to have an effect on the monetary base and hence on the money
supply is called a(n): (Points : 3)        sterilized foreign exchange intervention
       unsterilized foreign exchange intervention
       securitized foreign exchange intervention
       unsecuritized foreign exchange intervention
       real darn shame

Explanation / Answer

question 25: unsterilized foreign exchange intervention

question no 26:domestic currency, foreign assets

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