The Sale of Government Bonds Overseas

question 7

Multiple Choice

The sale of government bonds overseas:

• A)causes a fall in the domestic money supply.
• B)causes a deficit in the balance of payments.
• C)causes a smaller increase in interest rates than the sale of bonds to the domestic banking sector.
• D)causes a smaller increase in interest rates than the sale of bonds to the domestic private sector.

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Definitions:

Circumlocution

The use of many words where fewer would suffice, often to be vague or evasive, or to elaborate unnecessarily.

Blocking

In psychology, a process whereby a person's thoughts or memories are obstructed or interrupted.

Neologism

The creation or use of new words or expressions, often seen in linguistic development and in certain psychiatric conditions.

Circumstantiality

A communication disorder where the speaker provides unnecessary details and takes longer to convey a message but eventually reaches the point.