Which One of the Following Statements Is Most True

question 10

Multiple Choice

Which one of the following statements is most true?

• A) If central banks are not sterilizing and the home country has a balance of payments surplus, any associated increase in a foreign central bank's claims on the home country implies a decreased foreign money supply.
• B) If central banks are not sterilizing and the home country has a balance of payments surplus, any associated decrease in a foreign central bank's claims on the home country implies a decreased foreign money demand.
• C) If central banks are not sterilizing and the home country has a balance of payments surplus, any associated decrease in a foreign central bank's claims on the home country implies a decreased foreign money supply.
• D) If central banks are not sterilizing and the home country has a balance of payments shortage, any associated decrease in a foreign central bank's claims on the home country implies a decreased foreign money supply.
• E) If central banks are not sterilizing and the home country has a balance of payments shortage, any associated decrease in a foreign central bank's claims on the home country implies an increased domestic money supply.

---

Definitions:

Crista Ampullaris

Elevation on the inner surface of the ampulla of each semicircular duct for dynamic or kinetic equilibrium.

Semicircular Canals

Structures in the inner ear that are key to maintaining balance by detecting head movements.

Cupulae

Gelatinous, dome-shaped structures found in the semicircular canals of the inner ear, crucial for detecting rotational movements of the head.

Papilla

Small, nipplelike process; projection of the dermis, containing blood vessels and nerves, into the epidermis; projections on the surface of the tongue.