If a Central Bank Does Not Want to Allow the Domestic

question 50

Multiple Choice

If a central bank does not want to allow the domestic currency to depreciate,it will ________ international reserves by purchasing its currency,thereby ________ the monetary base and increasing the risk of higher unemployment.

• A)lose;decreasing
• B)lose;increasing
• C)acquire;decreasing
• D)acquire;increasing

---

Definitions:

Schizophrenia

A long-term mental disorder involving a breakdown in the relation between thought, emotion, and behavior, leading to faulty perception and withdrawal from reality.

Catatonia

A psychiatric condition marked by motor immobility or behavioral abnormality, such as stupor, rigidity, or extreme agitation.

Waxy Flexibility

A symptom seen in some psychiatric conditions where an individual's limbs remain in the position they are placed for long periods, indicative of catatonia.

Schizophrenia

A severe mental disorder marked by disturbances in thought, perception, and behavior, leading to hallucinations and delusions.