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Question
Sterilized intervention is the policy that:
a. targets a domestic inflation rate within a certain range of values.
b. attempts to influence exchange rate movements with official statements on the governments preferred rate, without taking any direct action in the financial markets.
c. coordinates monetary and fiscal policies with ones trading partners so as to achieve particular international economic outcomes.
d. offsets private capital movements with changes in the asset portfolio of the central bank.
Answer
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