Suppose the Central Bank of a Country Is Making No

question 145

Multiple Choice

Suppose the central bank of a country is making no transactions in the foreign-exchange market.In this case,it is likely that

• A)the central bank has pegged the exchange rate so that the current and capital accounts sum to zero.
• B)the exchange rate is being determined freely in the foreign-exchange market.
• C)this country must not be engaging in international trade.
• D)there must be a disequilibrium in the foreign-exchange market.
• E)this country has a pegged exchange rate and persistent surpluses on its balance of payments.

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Definitions:

Diversity

The state of having a range of different characteristics, backgrounds, races, genders, or ideas within a group or society.

Development

Refers to the process of growth and change that happens in biological, emotional, and cognitive areas across the lifespan.

Positive Adaptation

The ability to adjust effectively to new or changing situations and to overcome adversity, often associated with resilience and mental health.

Resilience

The capacity to recover quickly from difficulties; toughness, often reflecting mental or emotional strength in facing challenges.