Which One of the Following Statements Is the Most True

question 56

Multiple Choice

Which one of the following statements is the most true?

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

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Definitions:

Sales Decrease

A decline in the volume or value of products or services sold by a company over a specific period.

Inventory Management

The practice of overseeing and controlling the ordering, storage, and use of components that a company will use in the production of the items it will sell, as well as managing the quantities of finished products that are available for sale.

EOQ

Economic Order Quantity, a formula used to determine the optimal order size that minimizes total inventory costs.

JIT

Just-In-Time, a management strategy that aligns raw-material orders from suppliers directly with production schedules to improve efficiency and decrease waste.