Under a Fixed Exchange Rate Regime,if a Central Bank Must

question 79

Multiple Choice

Under a fixed exchange rate regime,if a central bank must intervene to purchase the ________ currency by selling ________ assets,then,like an open market sale,this action reduces the monetary base and the money supply,causing the interest rate on domestic assets to rise.

• A)domestic;foreign
• B)domestic;domestic
• C)foreign;foreign
• D)foreign;domestic

---

Definitions:

Testitis

Inflammation of the testes, often associated with infections, trauma, or autoimmune diseases. Incorrect term, the correct term is "orchitis."

Balanitis

Inflammation of the glans penis, often caused by poor hygiene, irritants, or infection.

Gynecomastia

The enlargement of breast tissue in males, often due to hormonal imbalance.

Condition

A particular state of being or existence of something, often influenced by various factors.