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

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Definitions:

Insecure

Being insecure involves feelings of uncertainty or anxiety about oneself, often reflecting a lack of confidence or assurance in one's abilities or value.

Behaviorism

A branch of psychology that focuses on observable behaviors rather than on internal processes such as thoughts and feelings.

Cognitive Mechanisms

Mental processes that enable understanding, analysis, decision-making, and learning, influencing how individuals perceive and interact with the world.

Free Will

The concept that humans have the ability to make choices that are not predetermined by past events or natural laws.