If Central Banks Were No Longer Obliged to Intervene in Currency

question 146

Multiple Choice

If central banks were no longer obliged to intervene in currency markets to fix exchange rates, governments would be able to use monetary policy to reach

• A) internal balance.
• B) external balance.
• C) internal and external balance.
• D) internal but not external balance.
• E) external but not internal balance.

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Definitions:

Assembly Line Worker

An individual who participates in a manufacturing process wherein each worker repeats one specific task to contribute to the production of a final product.

Rivets Per Minute

Measure of the speed at which riveting operations are performed, typically in manufacturing or construction settings.

MRP Of Land

The Marginal Revenue Product of Land is the additional revenue generated from the use of an additional unit of land, holding other factors constant.

Rent

Rent refers to the payment made periodically by a tenant to a landlord in exchange for the use of land, a building, property, or other assets.