› CFA › CFA Level 2 › Select the correct option. Search for:Search Button CFAFRMCAIACareersLounge GeneralLevel 1Level 2Level 3 Select the correct option. Reply Login Sign Up This topic has 2 replies, 2 voices, and was last updated May-18 by doCFA. Author Posts doCFAParticipant Summer Associate 24 May 2018 at 11:15 am Up0Down In order to control a capital inflow surge, a sterilized intervention operation: A. decreases a country’s monetary base. B. increases the level of short-term interest rates. C. offsets the excess liquidity created by FX intervention activities. Stuj79Participant Associate 24 May 2018 at 4:07 pm Up5Down I’ll opt for C 🙂 doCFAParticipant Summer Associate 24 May 2018 at 6:16 pm Up0Down Yes, You are right. C is correct. In a sterilized operation, the authorities of an emerging market country would sell domestic securities to the private sector to reduce the excess liquidity created by FX intervention activities. Author Posts Viewing 2 reply threads You must be logged in to reply to this topic. Log In Username: Password: Keep me signed in Register This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. Log In