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Consider a country that has an official settlements balance surplus and is experiencing upward pressure on the exchange-rate value of its currency. The central bank
Consider a country that has an official settlements balance surplus and is experiencing upward pressure on the exchange-rate value of its currency. The central bank is intervening to defend the country's fixed exchange rate, with no sterilization. Which of the following will NOT be true in this context? Multiple Choice O The balance sheet of the country's central bank will show an increase in official international reserve holdings. O The central bank of this country must intervene to buy foreign currency and sell domestic currency. O The balance sheet of the country's central bank will show an increase in its liabilities. O For the regular bank that is involved in the intervention transaction, the central bank decreases the bank's deposits at the central bank
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