If a Central Bank Were to Undergo Sterilized Foreign Exchange

Multiple Choice

If a central bank were to undergo sterilized foreign exchange intervention, it would offset an unwanted appreciation of its currency by

A) selling foreign reserves and selling domestic credit at the same time.
B) buying foreign reserves and selling domestic credit at the same time.
C) selling foreign reserves and buying domestic credit at the same time.
D) buying foreign reserves and buying domestic credit at the same time.
E) none of the above.