Which of the following is the term used to describe the offsetting of the effects of intervention in the foreign exchange market on the money supply?
A) daily intervention
B) sterilization
C) discretionary monetary policy
D) discretionary fiscal policy
E) currency board

Question

Quizplus · Accepted Answer

Sterilization refers to the actions taken by a country's central bank to counteract the effects of foreign exchange interventions on the domestic money supply. This is typically done to maintain a target interest rate or control inflation without affecting the exchange rate.

Which of the Following Is the Term Used to Describe