試題詳解

18. When the central bank intervenes in the foreign exchange market by purchasing foreign cur- rency, it also routinely engages in open market sales of government securities. Why?
(A) it has to sell securities to acquire the necessary funds
(B) to avoid a recession that may be caused by the reduction in money supply resulting from the purchase of foreign currency
(C) to prevent its intervention in the foreign exchange market from having a direct effect upon the domestic money supply
(D) it wants to isolate the domestic economy from foreign competition