Which of the Following Generally Occurs When a Central Bank

question 21

Multiple Choice

Which of the following generally occurs when a central bank pursues contractionary monetary policy?

• A) The central bank sells bonds and the interest rate increases.
• B) The central bank sells reserves and the interest rate increases.
• C) The central bank sells bonds and the interest rate decreases.
• D) The central bank purchases bonds and the interest rate decreases.
• E) The central bank purchases bonds and the interest rate increases.

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Definitions:

Motivation

The processes that account for an individual's intensity, direction, and persistence of effort toward attaining a goal.

Need for Affiliation

An individual's drive to relate to people and form social connections.

Intrinsic Motive

A type of motivation driven by an internal desire to perform a task for its own sake, due to personal satisfaction, interest, or enjoyment.

Behavioral Need

Psychological or physiological necessities that drive behaviors in individuals, seeking fulfillment to maintain well-being and homeostasis.