1. A foreign exchange intervention in which a central bank allows the purchase or sale of domestic currency to have an effect on the monetary base and hence on the money supply is called a(n):
sterilized foreign exchange intervention
unsterilized foreign exchange intervention
securitized foreign exchange intervention
unsecuritized foreign exchange intervention
real darn shame
2. A central bank sale of ________ to purchase _________ in the foreign exchange market results in an equal rise in its international reserves and the monetary base.
foreign assets, domestic currency
foreign assets, foreign currency
domestic currency, foreign assets
domestic currency, T-bills