Econ/Finance multiple choice questions:

Since the 2008 nancial crisis, central banks throughout the world injected enormous amounts of liquidity into the market \"At some point, however, as economic recovery takes hold, we will need to tighten monetary policy to prevent the emergence of an ination problem down the road (Bernanke, The Fed's Exit Strategy, Wall Street Journal, July 21, 2009).\" Which of the following is a way for the Fed to tighten monetary policy? a. Decrease federal funds rate. b. Sell securities through open market operation. c. Purchase securities through open market operation. d. Bail out troubled nancial institutions. Which of the following is NOT a consistent or accurate statement for a full convertibility policy of a country? a. Foreign exchange can be freely bought and sold for purposes of both current account and nancial account transactions. b. There is free capital mobility in and out of the country. c. The country must follow a xed exchange rate regime. With a xed exchange rate regime, the central bank has to if the country's currency is under downward pressure in the foreign exchange market? Buy domestic currency and sell foreign exchange Buy foreign exchange and sell domestic currency Buy both domestic currency and foreign exchange Sell both domestic currency and foreign exchange PH? 53"!\" Foreign exchange market intervention refers to The private sector transactions in the foreign exchange market. The central bank's purchase and sales of domestic assets. The central bank's restrictions on foreign exchange transactions by the private sector. The central bank's purchases and sales of foreign exchange. 9!\" ST!\