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The HKMA undertook a foreign exchange intervention (FXI) to defend Hong Kong dollars from depreciating. The FXI (increased/decreased) the HKMA's holdings of foreign assets by
The HKMA undertook a foreign exchange intervention (FXI) to defend Hong Kong dollars from depreciating. The FXI (increased/decreased) the HKMA's holdings of foreign assets by $1 million. To sterilize the monetary effect of the FXI, the HKMA would increase its domestic assets by (purchasing/selling) $1 million of government bonds. Group of answer choices decreased; selling. increased; selling. decreased; purchasing. increased; purchasing
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International Economics
Authors: Dennis Appleyard, Alfred Field
8th Edition
978-0078021671, 0078021677
