Swap Arrangements Are Bilateral Agreements Between Central Banks to Allow

question 84

True/False

Swap arrangements are bilateral agreements between central banks to allow countries to temporarily borrow funds to ease current-account deficits and discourage speculative capital flows.

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Definitions:

Trickle-across Effect

A trend diffusion process where fashion and ideas move horizontally within similar social levels or groups.

Class Structure

The organization of society into hierarchies based on socioeconomic status, class, or other distinctions.

Fashion Acceptance Cycle

The process through which new fashion trends are introduced, rise in popularity, peak, and eventually decline.

Overjustification Effect

A phenomenon in which being rewarded for doing an activity decreases a person's intrinsic motivation to perform that activity because the external reward overrides internal interest.