Under a Fixed Exchange Rate Regime,if a Central Bank Must

question 15

Multiple Choice

Under a fixed exchange rate regime,if a central bank must intervene to purchase the domestic currency by selling foreign assets,then,like an open market sale,this action ________ the monetary base and the money supply,causing the interest rate on domestic assets to ________.

• A)increases;rise
• B)increases;fall
• C)reduces;rise
• D)reduces;fall

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Definitions:

Prejudice

Prejudice is a preconceived opinion that is not based on reason or actual experience, often involving discriminatory thoughts or beliefs towards different groups of people.

Unconscious

The unconscious consists of the processes in the mind that occur automatically and are not available to introspection, including thought processes, memories, interests, and motivations.

Social Traps

Situations in which individuals or groups pursue self-interest leading to a result that is damaging to themselves or society as a whole.

Frustration

A feeling of anger, annoyance, or upset due to being unable to change or achieve something.