Assuming the Free Flow of Capital Across Borders, Which of the Following

question 39

Multiple Choice

Assuming the free flow of capital across borders, which of the following statements is most correct?

• A) A central bank can have both a fixed exchange rate and an independent inflation policy.
• B) A central bank cannot have both a fixed exchange rate and an independent inflation policy.
• C) The central banks of most industrialized countries focus on fixed exchange rates.
• D) While most central banks of industrialized countries favor fixing exchange rates, their primary concern is on domestic inflation.

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Definitions:

Post-enslavement

The historical period or conditions experienced by individuals or communities after being liberated from slavery.

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Modern Day Racism

Forms of racism that exist in contemporary society, often more subtle and systemic than overt racial discrimination.