Which of the Following Is NOT a Good Reason for a Central

question 8

Multiple Choice

Which of the following is NOT a good reason for a central bank to intervene in foreign exchange markets?

• A)lowering of domestic inflation by currency appreciation
• B)prevention of domestic currency depreciation
• C)offsetting a temporary change in trade patterns
• D)achieving an internal balance
• E)smoothing unstable exchange rate expectations

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Definitions:

Mind Wandering

The phenomenon of thoughts drifting away from the current task or focus, leading to daydreaming or thinking about unrelated topics.

Empathic Listening

A way of listening and responding to another person that improves mutual understanding and trust, by fully concentrating on the speaker's words and emotions.

Nonverbal Feedback

Communication without words, such as gestures, facial expressions, and body language, that conveys a response or reaction.

Stylistic Differences

Variations in the manner of expression or execution that distinguish individuals, cultures, or periods in art, writing, music, etc.