Securities exchange: +1,000 or -1,000

Foreign currency reserves: +1,000 or -1,000

Bank reserves: +1,000 or -1,000

change on the: Liabilities or asset

leaving the: Liabilities or asset

sterilized intervention: decreases or increases or leaves unchanged

exchange rate will: increase or decrease or be unchanged

Suppose that a central bank that is operating on the downward-sloping portion of the reserve demand curve decides to purchase $1,000 worth of foreign exchange reserves and then sterilize this foreign exchange market intervention. Show the impact on the central bank's balance sheet. (Click to select) Central Bank Balance Sheet U.S. Securities (Click to select) Bank Reserves Foreign currency reserves Bank Reserves (Click to select) (Click to select) What would the overall impact be on the monetary base? The overall impact of the sterilized intervention is to make a compositional change on the (Click to select) side of the balance sheet while leaving the (Click to select) side unchanged. Therefore, the sterilized intervention (Click to select) the monetary base and the domestic interest rate does not change. What would be the impact, if any, on the exchange rate? Assume that the intervention took place in a deep, well-functioning foreign exchange market. The exchange rate will (Click to select) Suppose that a central bank that is operating on the downward-sloping portion of the reserve demand curve decides to purchase $1,000 worth of foreign exchange reserves and then sterilize this foreign exchange market intervention. Show the impact on the central bank's balance sheet. (Click to select) Central Bank Balance Sheet U.S. Securities (Click to select) Bank Reserves Foreign currency reserves Bank Reserves (Click to select) (Click to select) What would the overall impact be on the monetary base? The overall impact of the sterilized intervention is to make a compositional change on the (Click to select) side of the balance sheet while leaving the (Click to select) side unchanged. Therefore, the sterilized intervention (Click to select) the monetary base and the domestic interest rate does not change. What would be the impact, if any, on the exchange rate? Assume that the intervention took place in a deep, well-functioning foreign exchange market. The exchange rate will (Click to select)