If the Central Bank Pegs the Exchange Rate Above Its

question 91

Multiple Choice

If the central bank pegs the exchange rate above its free-market equilibrium level,there will be a(n) ________ of foreign exchange and the central bank will ________ foreign currency.

• A)excess supply; purchase
• B)excess supply; sell
• C)excess demand; purchase
• D)excess demand; sell

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Definitions:

Decision Making

A cognitive process resulting in the selection of a belief or a course of action among several possible alternatives.

G. Stanley Hall

An American psychologist and educator who is considered one of the founding figures of child psychology and educational psychology.

Storm And Stress

A term referring to the period of adolescence in which teenagers are more prone to emotional turmoil, conflict with parents, and risky behavior, as proposed by G. Stanley Hall.

Moral Reasoning

The process of determining what is right or ethical in a given situation based on moral principles.