1. Countries that have adopted the euro must agree on a single ____ policy.

A. monetary

B. fiscal

C. worker compensation

D. foreign relations

2. Assume that the dollar has been consistently depreciating over a long period. The Fed decides to counteract this movement by intervening in the foreign exchange market using sterilized intervention. The Fed would

A.buy dollars with foreign currency and simultaneously sell Treasury securities for dollars.

B.buy dollars with foreign currency and simultaneously buy Treasury securities with dollars.

C.sell dollars for foreign currency and simultaneously sell Treasury securities for dollars.

D.sell dollars for foreign currency and simultaneously buy Treasury securities with dollars.