If a Central Bank Does Not Want to See Its

question 97

Multiple Choice

If a central bank does not want to see its currency fall in value,it may pursue ________ monetary policy to ________ the domestic interest rate,thereby strengthening its currency.

• A)expansionary;raise
• B)contractionary;raise
• C)expansionary;lower
• D)contractionary;lower

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Definitions:

Predicate

The portion of a sentence or proposition that asserts something about the subject, often containing the verb and object.

Allergic Reaction

An immune system response to a foreign substance (allergen) that is not typically harmful to the body.

Rice

A staple food grain consumed by a large portion of the world's population, grown in water-soaked fields, especially in Asia.

Whooping Cough

A highly contagious respiratory tract infection caused by the bacterium Bordetella pertussis, characterized by severe coughing fits followed by a "whooping" sound.