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Author Question: Most of the key decisions of the Federal Reserve are actually made by its Federal Open Market ... (Read 30 times)

jwb375

  • Hero Member
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  • Posts: 540
on: Jun 30, 2018
Most of the key decisions of the Federal Reserve are actually made by its Federal Open Market Committee.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

Suppose the U.S. dollar appreciates in value against the Australian dollar, and the Fed intervenes in the foreign exchange market by using U.S. dollars to buy Australian dollars. The Fed could sterilize the expansionary effect of this intervention by:
 a. buying U.S. dollars in the foreign exchange market.
  b. buying U.S. government bonds in the domestic open market.
  c. selling Australian dollars in the foreign exchange market.
  d. selling U.S. government bonds in the domestic open market.
  e. buying Australian dollars in the foreign exchange market.


joanwhite

  • Sr. Member
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  • Posts: 308
Reply #1 on: Jun 30, 2018
Answer to Question 1

True

Answer to Question 2

d


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