If the Fed were to purchase euros for dollars and at the same time sell U.S.Treasury securities in the open market, this would be an example of:

Question

Quizplus · Accepted Answer

This would be an example of a sterilized foreign exchange intervention, where the purchase of euros would be offset by the sale of Treasury securities in the open market, keeping the domestic monetary base unchanged.

If the Fed Were to Purchase Euros for Dollars and at the Same