If a Central Bank Wants to Keep the Value of Its

question 97

Multiple Choice

If a central bank wants to keep the value of its home currency fixed in the foreign exchange market, then an increase in the demand for its home currency will lead the central bank to

• A) do nothing.
• B) sell its home currency.
• C) buy its home currency.
• D) sell foreign currencies.

---

Definitions:

Leadership Outcomes

The results or impacts that are achieved as a direct consequence of a leader's actions, strategies, and interactions within an organization.

Upward Leadership

A leadership approach where individuals within an organization influence and lead their superiors or higher-level executives through suggestions, feedback, or by setting an example.

Influence

Is a behavioral response to the exercise of power.

Claiming

The act of stating or asserting something as a right, typically in a context of negotiations or disputes.