A Central Bank's Attempt to Prevent an Appreciation of Its

question 13

Multiple Choice

A central bank's attempt to prevent an appreciation of its currency can stimulate domestic inflation if the ________ of foreign currencies leads to ________ international reserves which ________ the monetary base.

• A)purchase;higher;increases
• B)purchase;lower;decreases
• C)sale;lower;decreases
• D)sale;higher;increases

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Definitions:

Cerebellum

A part of the brain that regulates motor movements, maintaining posture, balance, and coordinating speech.

Medulla

A section of the brainstem involved in autonomic functions, such as breathing and heart rate.

Hypothalamus

The Hypothalamus is a region of the brain that coordinates many bodily functions, including hunger, thirst, sleep, and the endocrine system.

Thalamus

A part of the brain that acts as a central relay station, transmitting sensory and motor signals to the cerebral cortex.