Under Fixed Exchange Rates, a Central Bank

question 107

Multiple Choice

Under fixed exchange rates, a central bank

• A)adjusts the money supply automatically and immediately to changes in the demand and supply of foreign exchange
• B)need hold no reserves of foreign exchange
• C)enforces the fixed exchange rate by refusing to buy or sell foreign exchange whenever changes occur in demand or supply
• D)may find its reserves fluctuating as demand and supply conditions change
• E)has no authority to buy or sell foreign exchange

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In language learning, the method of correcting a student's mistake by correctly reformulating their erroneous utterance without explicit indication of the error.

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The act of identifying or characterizing someone or something with a descriptor or name, often related to social stigma or categories.

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