If Central Banks Were No Longer Obliged to Intervene in Currency

question 146

Multiple Choice

If central banks were no longer obliged to intervene in currency markets to fix exchange rates, governments would be able to use monetary policy to reach

• A) internal balance.
• B) external balance.
• C) internal and external balance.
• D) internal but not external balance.
• E) external but not internal balance.

---

Definitions:

Albert Bandura

Albert Bandura is a psychologist known for his work on social learning theory, emphasizing the role of observational learning, self-efficacy, and reciprocal determinism in human behavior.

Heritability Ratio

An estimate of the proportion of trait variability in a population that is determined by variations in genetic inheritance.

Trait Variability

The degree to which individuals differ from one another in terms of specific characteristics or traits.

Genetic Inheritance

The process by which genetic information is passed on from parents to their offspring, determining traits.