If a Central Bank Does Not Want to Allow the Domestic

question 108

Multiple Choice

If a central bank does not want to allow the domestic currency to appreciate,it will ________ international reserves by selling its currency,thereby ________ the monetary base and increasing the risk of higher inflation.

• A)lose;decreasing
• B)lose;increasing
• C)acquire;decreasing
• D)acquire;increasing

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Definitions:

Personal Magnetism

The natural ability of an individual to attract or influence others owing to their charisma, energy, or personality.

Team Play

The act of collaborating and working together harmoniously with others in a group toward a common goal or objective.

Collaboration

The act of working together with one or more people to achieve a common goal, typically involving shared ideas, responsibilities, and efforts.