If you were a monetary authority and wanted to neutralize the effects of central bank currency interventions such as interest rate changes,which of the following would be most effective?
A) the sale or purchase of Treasury securities
B) the creation of a currency board
C) pegging the exchange rate to another currency
D) convincing investors that the currencies involved in the intervention are perfect complements to each other
Correct Answer:
Verified
Q23: Which one of the following is NOT
Q24: During 1995,the yen went from $0.0125 to
Q25: Which type of money is most likely
Q26: An increase in the real exchange rate
Q27: Large government budget deficits will
A)raise the value
Q29: Which of the following is an example
Q30: The willingness of people to hold money
A)increases
Q31: A slowdown in U.S.economic growth will
A)boost the
Q32: If a foreigner purchases a U.S.government security
Q33: Sound economic policies will
A)raise the value of
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