If a Central Bank Does Not Want to See Its

question 97

Multiple Choice

If a central bank does not want to see its currency fall in value,it may pursue ________ monetary policy to ________ the domestic interest rate,thereby strengthening its currency.

• A)expansionary;raise
• B)contractionary;raise
• C)expansionary;lower
• D)contractionary;lower

---

Definitions:

Stress-relief Exercise

Physical activities designed to reduce tension and improve mental well-being.

Eye Contact

The act of looking directly into another person's eyes, which can convey a range of emotions, signal attention or respect, and facilitate non-verbal communication.

Natural Gestures

Movements or signals made with the body that are instinctive or spontaneously generated, often used in communication.

Pace Back

A movement or action where one walks back and forth in a confined area, often indicating thought or anxiety.