Which One of the Following Statements Is Most Correct

question 21

Multiple Choice

Which one of the following statements is most correct?

• A) If central banks are not sterilizing and the home country has a balance of payments surplus, any associated increase in a foreign central bank's claims on the home country implies a decreased foreign money supply.
• B) If central banks are not sterilizing and the home country has a balance of payments surplus, any associated decrease in a foreign central bank's claims on the home country implies a decreased foreign money demand.
• C) If central banks are not sterilizing and the home country has a balance of payments surplus, any associated decrease in a foreign central bank's claims on the home country implies a decreased foreign money supply.
• D) If central banks are not sterilizing and the home country has a balance of payments shortage, any associated decrease in a foreign central bank's claims on the home country implies a decreased foreign money supply.
• E) If central banks are not sterilizing and the home country has a balance of payments shortage, any associated decrease in a foreign central bank's claims on the home country implies an increased domestic money supply.

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Definitions:

Procedural Memory

A type of long-term memory involved in the learning and execution of motor skills and actions.

Semantic Memory

A type of long-term memory that involves the recall of general facts and concepts not linked to personal experience.

Procedural Memory

The type of long-term memory responsible for knowing how to perform different actions and skills, essentially knowledge of procedures rather than facts.

Episodic Memory

The type of long-term memory that involves the recollection of specific events, situations, and experiences.