Everything else held constant,if a central bank makes a sterilized purchase of foreign assets,then the domestic currency will

Question

Quizplus · Accepted Answer

A sterilized purchase of foreign assets by a central bank involves buying foreign assets and simultaneously conducting domestic operations to offset the increase in the money supply. This means the domestic currency's value is not directly affected by such transactions, as the potential impact on the currency value through changes in the money supply is neutralized.

Everything Else Held Constant,if a Central Bank Makes a Sterilized