McqMate
| Q. |
Under imperfect asset substitutability: |
| A. | Central banks cannot keep the exchange rate fixed. |
| B. | Domestic interest rates should be equal to foreign interest rates. |
| C. | Central banks cannot affect money supply. |
| D. | Sterilized intervention affects money supply. |
| Answer» D. Sterilized intervention affects money supply. | |
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