If a central bank intervenes in the foreign exchange market and does nothing else then:
A) the current account will get worse.
B) the current account will correct itself automatically.
C) the money supply will be unaffected.
D) sterilization will occur.
E) sterilization will be ineffective.

Question

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The Answer of If a central bank intervenes in the foreign exchange market and does nothing else then:
A) the current account will get worse.
B) the current account will correct itself automatically.
C) the money supply will be unaffected.
D) sterilization will occur.
E) sterilization will be ineffective.

If a Central Bank Intervenes in the Foreign Exchange Market