If the Reserve Bank Sets a Target Exchange Rate That

question 52

Multiple Choice

If the Reserve Bank sets a target exchange rate that is higher than the current exchange rate, then

• A)the Reserve Bank must buy dollars.
• B)the Reserve Bank must sell dollars.
• C)the Reserve Bank will try to print more dollars for foreign distribution.
• D)the Reserve Bank can do nothing in the short run.

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Definitions:

Diet Pills

Medications or supplements taken to help reduce or control weight, often by suppressing appetite or increasing metabolism.

Teratogen

From the Greek word tera, meaning “monster,” this term refers to any agent that causes a birth defect. Teratology is the field of study that investigates the causes of birth defects.

Prescription Drug

Medications that are legally dispensed only by a prescription from a licensed healthcare provider.

Some Depressants

Substances that decrease or slow down central nervous system activities, affecting mental and physical functions.