Which of the Following Statements Is  NOT Correct

question 51

Multiple Choice

Which of the following statements is  NOT correct?

• A)Central banks often consider adjusting a currency's value to influence economic conditions.
• B)If the U.S. central bank wishes to stimulate the economy, it could weaken the dollar.
• C)A weaker dollar could cause U.S. inflation by reducing foreign competition.
• D)Direct intervention occurs when the central bank influences the factors that determine the dollar's value.

---

Definitions:

Household Debt

The total amount of money that all members of a household owe to outside parties, including mortgages, credit cards, and loans.

Adjustable Rate Mortgages

A type of mortgage loan where the interest rate can change over time based on an index or benchmark.

Sub-Prime Loans

These are loans offered to individuals with poor credit histories or higher risk profiles at higher interest rates than standard loans.

Low Short-Term Interest Rate

A situation where the interest rates for borrowing funds for a short period are significantly lower than usual, typically indicating a policy aimed at stimulating economic growth.