A foreign exchange intervention with an offsetting open market operation (e.g. a purchase of US Treasury bonds by the Fed with the Fed's international reserves) by the central bank that leaves the monetary base unchanged is called O. a) an exchange rate neutral intervention. O. b) an unsterilized foreign exchange intervention. O. c) a tax base neutral foreign exchange intervention. O. d) a sterilized foreign exchange intervention.

A foreign exchange intervention with an offsetting open market operation (e.g. a purchase of US Treasury bonds by the Fed with the Fed's international reserves) by the central bank that leaves the monetary base unchanged is called O. a) an exchange rate neutral intervention. O. b) an unsterilized foreign exchange intervention. O. c) a tax base neutral foreign exchange intervention. O. d) a sterilized foreign exchange intervention.

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter6: Government Influence On Exchange Rates

Section: Chapter Questions

Problem 31QA

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