If Central Banks Were No Longer Obliged to Intervene in Currency

question 146

Multiple Choice

If central banks were no longer obliged to intervene in currency markets to fix exchange rates, governments would be able to use monetary policy to reach

• A) internal balance.
• B) external balance.
• C) internal and external balance.
• D) internal but not external balance.
• E) external but not internal balance.

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Definitions:

Acquired Rights

are rights that employees gain as a result of working for their employer over a period, often concerning job security and benefits.

Intended Third-party Beneficiary

A person or entity not party to a contract but whom parties to the contract intend to benefit directly through the contract’s performance.

Proving

The process of establishing the truth or validity of something through evidence or argument.

Vesting

The process by which an individual earns the right to receive full benefits from a pension plan or stock option over time.