If a Central Bank Devaluates Its Currency, Then

question 39

Multiple Choice

If a central bank devaluates its currency, then

• A)the domestic money supply will fall.
• B)inflation will increase.
• C)deflation will occur.
• D)its domestic interest rate will fall.
• E)its domestic money supply will fall.

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Definitions:

Pegging

In material requirements planning systems, tracing upward in the bill of material from the component to the parent item.

Part Requirement

Specification or quantity of a component necessary for completing a manufacturing process or assembling a final product.

Parent Component

In manufacturing or software development, a main component that includes or is linked to subordinate components within a product or system.

Safety Stock

Inventory kept on hand as a buffer against variability in demand or supply, ensuring that out-of-stock situations are minimized.