Buying and Selling Foreign Currency by the Central Bank Is

question 95

Multiple Choice

Buying and selling foreign currency by the central bank is a trade policy whose objective is:

• A)stabilizing the exchange rate against external shocks.
• B)stabilizing the interest rate against foreign capital outflows.
• C)promoting long term economic growth.
• D)reducing purchases of assets abroad.

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Definitions:

Net Income

Net income, also known as net profit, is the total earnings of a company after subtracting all expenses, taxes, and costs from total revenue.

Sales Tax

A tax imposed by a government on the sale of goods and services, typically a percentage of the retail price paid by the consumer.

Multiple-Step Income Statement

A multiple-step income statement is a detailed financial report that separates operating revenues and expenses from non-operating ones to calculate net income in several steps or segments.

Other Revenue

Revenue from sources other than the primary operating activity of a business.