The Central Bank of Country X Buys and Sells Its

question 12

Multiple Choice

The central bank of Country X buys and sells its own currency to ensure that the currency is always exchanged in a ratio of 2:1 with the currency of Country Y. What can we conclude about these two currencies?

• A) Country X is using the Euro.
• B) Country X has pegged its currency to the currency of Country Y.
• C) Country X has an undesirable currency.
• D) Country X allows its currency to float relative to the currency of Country Y.

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Definitions:

Minor Tranquilizers

Medications often prescribed to reduce anxiety and induce calmness without inducing sleep.

Biomedical Therapies

Therapies that directly affect the biological functioning of the body and brain; therapies for mental disorders in which a person with a problem is treated with biological or medical methods to relieve symptoms.

Psychiatrists

Medical doctors specializing in diagnosing, treating, and preventing mental, emotional, and behavioral disorders.

Culture-Bound Values

Ethical or moral values that are strongly influenced by cultural practices and beliefs.