3 pts D Question 32 Which of the following statement is FALSE? When central banks intervene in the foreign exchange market without adjusting for the change in the money supply, it is engaging in a nonsterilized intervention. Direct intervention by central banks to smooth exchange rate movements are always successful. Direct government intervention typically does not have a permanent effect on exchange rate movements. The potential effectiveness of a central bank's direct intervention is influenced by the amount of reserves it can use. The larger the FX reserves, the more effective the intervention is likely to he || Prociorial . Direct intervention is more likely to be et 3 pts D Question 32 Which of the following statement is FALSE? When central banks intervene in the foreign exchange market without adjusting for the change in the money supply, it is engaging in a nonsterilized intervention. Direct intervention by central banks to smooth exchange rate movements are always successful. Direct government intervention typically does not have a permanent effect on exchange rate movements. The potential effectiveness of a central bank's direct intervention is influenced by the amount of reserves it can use. The larger the FX reserves, the more effective the intervention is likely to he || Prociorial . Direct intervention is more likely to be et