When
the central bank allows the purchase or sale of domestic currency to
have an effect on the monetary base, it is called
A: an
unsterilized foreign exchange intervention.
B: a
sterilized foreign exchange intervention.
C: an
exchange rate feedback rule.
D: a
money neutral foreign exchange intervention
the central bank allows the purchase or sale of domestic currency to
have an effect on the monetary base, it is called
A: an
unsterilized foreign exchange intervention.
B: a
sterilized foreign exchange intervention.
C: an
exchange rate feedback rule.
D: a
money neutral foreign exchange intervention
举一反三
- Central Bank sometimes carry out equal foreign and domestic asset transactions in opposite directions to nullify the impact of their foreign exchange operations on the domestic money supply. This policy is called sterilized foreign exchange intervention.
- Following an expansion of the money supply, a government committed to<br/>maintaining a fixed exchange rate must ____. A: accept a surplus in its current account. B: not use sterilized intervention. C: increase its level of government expenditure and autonomous<br/>investments. D: intervene in the foreign exchange market to sell foreign currency and<br/>buy domestic currency.
- If the forward exchange rate, defined as the domestic currency price<br/>of the foreign currency, is smaller than the spot exchange rate,<br/>there is a ( ). A: forward premium on the foreign currency. B: forward discount on the foreign currency. C: shortage of dollars. D: surplus of dollars.
- Under which of the following policies does the government enter the foreign exchange market and buy or sell foreign currency in order to influence the exchange rate of the domestic currency? A: Exchange controls B: Capital controls C: Official intervention D: Adjustable peg
- The simultaneous purchase and sale of a given amount of foreign<br/>exchange for two different value dates is referred to as a ____ A: Fiscal barter B: Liquid trade C: Currency exchange D: Currency swap