b) A central bank sale of a foreign asset is no different from an open market sale of a government bond. Is this stateme

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answerhappygod
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b) A central bank sale of a foreign asset is no different from an open market sale of a government bond. Is this stateme

Post by answerhappygod »

b) A central bank sale of a foreign asset is no different from
an open market sale of a
government bond. Is this statement true, false or uncertain?
Briefly explain. (2 Marks)
c) If the Bank of Zambia buys dollars in the foreign exchange
market but does not sterilize
the intervention, what will be the impact on international
reserves, the money supply,
and the exchange rate? (3 Marks)
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