If a Country's Central Bank Does Not Intervene in the Foreign

question 86

Multiple Choice

If a country's central bank does not intervene in the foreign exchange market, the country has

• A)a crawling peg exchange rate policy.
• B)a fixed exchange rate policy.
• C)a flexible exchange rate policy.
• D)no exchange rate policy.
• E)a responsible exchange rate policy.

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Definitions:

Calcitonin

A hormone secreted by the thyroid gland that rapidly lowers the calcium content in the blood.

Oxytocin

Hormone secreted by the hypothalamus and released by the posterior lobe of the pituitary gland; stimulates contraction of the pregnant uterus and the ducts of mammary glands.

Suprachiasmatic Nucleus

Main biological clock; located in the hypothalamus. Important in setting circadian rhythms.

Pineal Gland

Endocrine gland located in the brain.