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 leave the central bank's holdings of foreign reserves unchanged.
C. A sterilized foreign exchange intervention will not alter the composition of a central bank's assets.
D. An unsterilized foreign exchange intervention will alter commercial bank reserves.


Answer: D

Economics

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