Which One of the Following Statements Is Most Correct

question 21

Multiple Choice

Which one of the following statements is most correct?

• A) If central banks are not sterilizing and the home country has a balance of payments surplus, any associated increase in a foreign central bank's claims on the home country implies a decreased foreign money supply.
• B) If central banks are not sterilizing and the home country has a balance of payments surplus, any associated decrease in a foreign central bank's claims on the home country implies a decreased foreign money demand.
• C) If central banks are not sterilizing and the home country has a balance of payments surplus, any associated decrease in a foreign central bank's claims on the home country implies a decreased foreign money supply.
• D) If central banks are not sterilizing and the home country has a balance of payments shortage, any associated decrease in a foreign central bank's claims on the home country implies a decreased foreign money supply.
• E) If central banks are not sterilizing and the home country has a balance of payments shortage, any associated decrease in a foreign central bank's claims on the home country implies an increased domestic money supply.

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Definitions:

Psychological Capacities

Refers to an individual's cognitive, emotional, and behavioral potential or abilities that can be developed and enhanced over time.

Biological-Genetic Constitutions

The unique set of genetic material and biological characteristics each individual inherits from their parents, impacting their physical and sometimes psychological traits.

Economic and Political Power

The ability or capacity of individuals or groups to influence or control the distribution and use of resources and decision-making processes in a society.

Sociopolitical Influence

Sociopolitical influence refers to the impact that social and political factors have on individual behavior, attitudes, and beliefs, within a specific cultural or societal context.