If a Central Bank Engages in an Unsterilized Foreign-Exchange Intervention

question 61

Multiple Choice

If a central bank engages in an unsterilized foreign-exchange intervention with the intention of raising the foreign-exchange value of its currency,

• A)the central bank's holdings of international reserves will fall.
• B)the domestic money supply will rise.
• C)domestic interest rates will fall.
• D)it will buy foreign assets.

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Definitions:

Heritability Estimates

Statistical measures that describe how much genetic factors contribute to individual differences in a particular trait or behavior in a population.

Verbal Ability

The capacity to use language effectively, including aspects like vocabulary, syntax, and semantic knowledge.

Adoptive Parents

Individuals or couples who legally take on the parental responsibilities for a child that is not biologically theirs.

Biological Parents

The parents who are genetically related to a child, as opposed to adoptive parents or caregivers.