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:

Negligence Theory

A legal theory grounding the claim that a party's failure to act with the level of care considered reasonable under the circumstances leads to harm or damage to another.

Propensities

Natural inclinations or tendencies to behave in a particular way.

Stitches

A method of closing wounds with thread and a needle to promote healing and minimize scarring.

Contributory Negligence

A legal defense where if the plaintiff is found to have contributed to their own harm, they may be barred from recovery or have their compensation reduced.