If a Central Bank Does Not Want to Allow the Domestic

question 50

Multiple Choice

If a central bank does not want to allow the domestic currency to depreciate,it will ________ international reserves by purchasing its currency,thereby ________ the monetary base and increasing the risk of higher unemployment.

• A)lose;decreasing
• B)lose;increasing
• C)acquire;decreasing
• D)acquire;increasing

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Definitions:

Cross-Cultural Values

Beliefs or priorities that vary among different cultures, affecting behavior, practices, and perceptions.

Power Distance

A cultural dimension that describes the extent to which less powerful members of organizations and institutions accept and expect power to be distributed unequally.

Ethical Sensitivity

The capability to recognize and respond to ethical issues and dilemmas that arise in various situations.

MARS Model

A framework identifying four critical factors—Motivation, Ability, Role Perceptions, and Situational factors—that determine an individual's work performance.