A Central Bank's Attempt to Prevent an Appreciation of Its

question 115

Multiple Choice

A central bank's attempt to prevent an appreciation of its currency can stimulate domestic inflation if the ________ of its currency leads to ________ international reserves which ________ the monetary base.

• A)purchase;higher;increases
• B)purchase;lower;decreases
• C)sale;lower;decreases
• D)sale;higher;increases

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Definitions:

Ex-Dividend Date

The date after which a stock is traded without its previously declared dividend, meaning purchasers no longer have the right to receive the declared payment.

Date Of Record

A specific date set by a company on which the shareholders must be registered to be entitled to dividend payments.

Cum Dividend

A term used to describe a stock that is trading with the right to receive a dividend that has been declared but not yet paid.

Ex-Dividend Date

The specific date on which shares traded no longer come with the right to receive the most recently declared dividend.