Question3 The Reserve Bank of Australia (RBA) intends to stabilize the exchange rate by intervening in the foreign exchange market. To do so, it purchases 100 billion USD using AUD. Which of the following statements is correct? Select one alternative: a. The supply of AUD would decrease. b. The USD would depreciate against the AUD. c. If this is a non-sterilized intervention, inflationary pressure in Australia would increase. d. To sterilize this intervention, the RBA would buy government bonds from commercial banks. ResetMaximum marks: 1 Flag question undefined单项选择题

A

a. The supply of AUD would decrease.

B

b. The USD would depreciate against the AUD.

C

c. If this is a non-sterilized intervention, inflationary pressure in Australia would increase.

D

d. To sterilize this intervention, the RBA would buy government bonds from commercial banks.

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