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

question 79

Multiple Choice

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

• A)domestic;foreign
• B)domestic;domestic
• C)foreign;foreign
• D)foreign;domestic

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Definitions:

Under Pressure

Experiencing stress or tension as a result of challenging circumstances or high demands.

Dimension of Personality

Fundamental traits or characteristics that make up an individual's personality, often used in psychology to analyze and understand human behavior.

Core Self-evaluation

A broad personality concept that reflects individuals' fundamental assessments of themselves, their abilities, and their control over their environment.

Emotional Stability

A personality trait characterized by the capability of handling stress, maintaining calmness, and not frequently experiencing negative emotions.