Everything Else Held Constant,if a Central Bank Makes an Unsterilized

question 22

Multiple Choice

Everything else held constant,if a central bank makes an unsterilized purchase of foreign assets,then the domestic money supply will ________ and the domestic currency will ________.

• A)increase;appreciate
• B)increase;depreciate
• C)decrease;appreciate
• D)decrease;depreciate

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Definitions:

Income Statement

A report detailing a business's income and outgoings within a set timeframe, resulting in either a net gain or deficit.

Recognized

Accounting term referring to the formal acknowledgment in financial statements of income earned or expenses incurred.

Dividend Yield

The dividend yield is a financial ratio that shows how much a company pays out in dividends each year relative to its stock price.

Par Value

The face value of a bond or the stock value stated in the corporate charter.