If the Bank of Canada Buys $3 Billion Worth of Japanese

question 77

Multiple Choice

If the Bank of Canada buys $3 billion worth of Japanese yen,$4 billion of German marks,and $2 billion of French francs,and sells $5 billion of British pounds,how does this affect the official settlements balance?

• A)falls by $4 billion
• B)rises by $4 billion
• C)rises by $9 billion
• D)falls by $5 billion

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Definitions:

Normally Closed

A term referring to an electrical switch or circuit state where the contacts are closed (allowing current flow) when no actuating force is applied.

Electrical State

An electrical state refers to the condition of an electrical component or system, such as being charged, discharged, on, or off.

Drum Switch

A switch used to change the direction of rotation of an electric motor or machine tool.

Selector Switch

A switch that allows the user to choose between multiple states or modes of operation within a circuit by turning a knob or lever to the desired position.