- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 8. Currency Exchange Rates: Understanding Equilibrium Value
- Subject 7. Exchange Rate Management: Intervention and Controls
CFA Practice Question
Which type of intervention conflicts with price stability?
B. Sterilized intervention.
C. Both.
A. Unsterilized intervention.
B. Sterilized intervention.
C. Both.
Correct Answer: A
Unsterilized interventions can influence nominal exchange rates, but they conflict with price stability.
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