If You Were a Monetary Authority and Wanted to Neutralize

Multiple Choice

If you were a monetary authority and wanted to neutralize the effects of central bank currency interventions such as interest rate changes,which of the following would be most effective?

A) the sale or purchase of Treasury securities
B) the creation of a currency board
C) pegging the exchange rate to another currency
D) convincing investors that the currencies involved in the intervention are perfect complements to each other