Under a Fixed Exchange Rate System,a Balance of Payments Surplus

question 45

Multiple Choice

Under a fixed exchange rate system,a balance of payments surplus may:

• A)decrease the country's money supply if there is a non-sterilized central bank intervention.
• B)decrease the country's money supply if there is a sterilized central bank intervention.
• C)increase the country's money supply if there is a non-sterilized central bank intervention.
• D)increase the country's money supply if there is a sterilized central bank intervention.

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Definitions:

Demand Forecasting

The practice of predicting the future demand for a product or service based on historical sales data, analysis, and market trends.

Quantitative Method

A research technique that focuses on quantifying the collection and analysis of data, primarily using statistical tools to establish relationships and test hypotheses.

Delphi Technique

A method for forecasting and decision-making that involves a panel of experts answering questionnaires in several rounds, with anonymous summaries of their opinions provided after each round to achieve consensus.

Nominal Group Technique

A structured method for group brainstorming that encourages contributions from everyone in the group and is used for generating and prioritizing ideas.