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If the Fed intervenes to support the domestic currency by selling $1bn of foreign currency reserves, it can fully sterilize the intervention by:? A) Selling

If the Fed intervenes to support the domestic currency by selling $1bn of foreign currency reserves, it can fully sterilize the intervention by:?

A) Selling $1bn of US government bonds

B) Buying $1bn of US government bonds

C) Selling about $(1/12)bn of US government bonds

D) Buying about $(1/12)bn US government bonds

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