istently depreciating over a long period. The Fed intervening in the foreign exchange market using B. $559,500 C 5582,500 D. $393.500 17. Assume that the dollar has been consistently den decides to counteract this movement by intervening sterilized intervention. The Fed would A. buy dollars with foreign currency and simultaneously imultaneously sell Treasury securities for simultaneously buy Treasury securities with dollars. B. buy dollars with foreign currency and simultaneously buy T nd simultaneously sell Treasury securities for dollars Csell dollars for foreign currency and simultaneously sell Treasury dollars. D. sell dollars for foreign currency and simultaneou ors for foreign currency and simultaneously buy Treasury securities with dollars. E none of the above 18. The equilibrium exchange rate of pounds is $1.70. At an exchange rate of $1.72 per pound A U.S. demand for pounds would exceed the supply of pounds for sale and there would be a shortage of pounds in the foreign exchange market. B. U.S. demand for pounds would be less than the supply of pounds for sale and there would be a shortage of pounds in the foreign exchange market. C. U.S. demand for pounds would exceed the supply of pounds for sale and there would be a surplus of pounds in the foreign exchange market. D. U.S. demand for pounds would be less than the supply of pounds for sale and there would be a surplus of pounds in the foreign exchange market. E U.S. demand for pounds would be equal to the supply of pounds for sale and there would be a shortage of pounds in the foreign exchange market. 19. To force the value of the British pound to depreciate ayan should: me of the British pound to depreciate against the dollar, the Federal Reserve A. sell dollars for pounds in the foreign wars for pounds in the foreign exchange market and the Bank of England should sell dollars for pounds in the foreign exchange ma B. sell pounds for dollars in the foreign exchange marke in market "we foreign exchange market and the Bank of England