Suppose the Fed wants the dollar to appreciate. The Fed hopes to accomplish this goal by using $11 billion in U.S. currency in a foreign exchange market intervention. In order to cause the dollar to appreciate, the Fed will need to sell V $11 billion in the foreign exchange market, while also V some of their currency reserves of another country. Use the following table to Show the changes in the balance sheet of the Fed. Assets v v by $11 billion v v by $11 billion This intervention would be classied as V foreign exchange intervention, and would have V effect on the money supply. Suppose the Fed wants the dollar to appreciate, but also wants the domestic money supply to remain unchanged. In addition to the foreigneexchange market intervention you just outlined, the Fed will also need to V government securities, thereby V the monetary base so that it remains unchanged. This intervention would be classified as V foreign exchange intervention since the net result would be no change in the domestic money supply