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Which of the Following Is Not True Regarding Government Intervention

Question 103

Multiple Choice

Which of the following is not true regarding government intervention?


A) Under the direct method of intervention, an appreciation of the dollar would be accomplished by exchanging dollars for foreign currencies.
B) Under nonsterilized intervention, the Fed would intervene in the foreign exchange market without adjusting the money supply.
C) Under sterilized intervention, the Fed would intervene simultaneously in the foreign exchange and Treasury markets.
D) Under indirect intervention, the Fed would attempt to affect the dollar's value by indirectly influencing the factors that determine it, such as interest rates.
E) All of these are true.

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