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Question
Which of the following statements is most correct?A. A sterilized foreign exchange intervention will alter the composition of a central bank's assets and alter commercial bank reserves.
B. A sterilized foreign exchange intervention will not alter the composition of a central bank's assets.
C. An unsterilized foreign exchange intervention will alter commercial bank reserves.
D. A sterilized foreign exchange intervention will leave the central bank's holdings of foreign reserves unchanged.
Answer
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