Which of the following statements is most correct?
A) A sterilized foreign exchange intervention will alter the composition of a central bank's assets and alter commercial bank reserves.
B) A sterilized foreign exchange intervention will not alter the composition of a central bank's assets.
C) An unsterilized foreign exchange intervention will alter commercial bank reserves.
D) A sterilized foreign exchange intervention will leave the central bank's holdings of foreign reserves unchanged.
Correct Answer:
Verified
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