During a foreign exchange (FX) intervention, if the central banks do not isolate their domestic money supplies from the FX transactions, such as open market
During a foreign exchange (FX) intervention, if the central banks do not isolate their domestic money supplies from the FX transactions, such as open market operation, we call this ________. a) unsterilized intervention b)sterilized intervention c) capital market intervention d)money market intervention Question 7 The goal of central bank interventions around the world is usually to ____ the demand for one currency while ______ the supply of another currency. a) increase,increasing b)decrease, decreasing c)increase, decreasing d)decrease, increasing Question 8 Suppose foreign investment agencies purchase large amounts of Treasury bill (T-bill), then a)supply of dollars rises b)federal government deficit declines c)demand for dollars rises d)U.S. money supply rises question 9 Which of the following types of money will be more likely to have volatilities in the foreign exchange market? a)fiat money b)gold-linked money c)pegged money (like HK dollar pegging 7.78:1 to US dollar) d)none of the above Question 10 Which of the following actions belong to foreign exchange market intervention? a)the U.S. government pays Social Security checks to pensioners living in Thailand b)Apple sells yens it received in international trade c)the Mexican government pays interest to Saudi Arabian investors d)the ECB sells dollars in the foreign exchange market to prop up the value of the euro.
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