A Central Bank Can "Create" Money by

question 6

Multiple Choice

A central bank can "create" money by

• A)selling some of its foreign-currency reserves for domestic currency.
• B)selling government Treasury bills to the commercial banks.
• C)increasing the rate of inflation.
• D)issuing its own Central Bank bonds.
• E)purchasing government securities on the open market.

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Definitions:

MMPI

The Minnesota Multiphasic Personality Inventory (MMPI) is a standardized psychometric test of adult personality and psychopathology used to diagnose mental disorders.

Lie Scale

A tool used in psychological testing to measure the tendency of test participants to provide socially desirable responses instead of choosing responses that are reflective of their true behavior.

Trait Dimension

A trait dimension is a continuum along which individual differences in a specific personality trait can be measured.

Conscientiousness

A personality trait characterized by thoroughness, diligence, and the organization of one's actions.