Which of the Below Statements Is TRUE

question 8

Multiple Choice

Which of the below statements is TRUE?

• A) The goal of stabilizing interest rates is indirectly related to the goal of growth and to the Fed's responsibility for the health of the nation's financial and banking system.
• B) The Fed's goal is to stabilize and prevent changes in rates.
• C) Because exchange rates are independent of the monetary policies of the major countries, the Fed has accepted the goal of stabilizing foreign exchange rates.
• D) A chief disadvantage of unstable foreign currency exchange rates is that volatility in the prices of currencies inhibits the international trade that offers a host of benefits to all participating countries.

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Definitions:

Configural Model

Asch’s Gestalt-based model of impression formation, in which central traits play a disproportionate role in configuring the final impression.

First Impressions

Initial judgments and perceptions formed about an individual upon meeting, which significantly influence future interactions.

Asch

Refers to Solomon Asch, a psychologist known for conducting experiments on conformity, demonstrating how social pressure can influence individual judgment.