If a Central Bank Does Not Want to See Its

question 97

Multiple Choice

If a central bank does not want to see its currency fall in value,it may pursue ________ monetary policy to ________ the domestic interest rate,thereby strengthening its currency.

• A)expansionary;raise
• B)contractionary;raise
• C)expansionary;lower
• D)contractionary;lower

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Definitions:

Chronic

Describing a health condition that is persistent or long-lasting in its effects.

Abate

To reduce in amount, degree, or severity; often used in the context of something undesirable.

Format

A structure or layout of data that specifies its arrangement and organization.

Rapport

A positive relationship characterized by mutual understanding, trust, and agreement between people.