The Vast Majority of the Foreign-Exchange Reserves Held by Central

question 86

Multiple Choice

The vast majority of the foreign-exchange reserves held by central banks are denominated in

• A)local currencies.
• B)U.S.dollars.
• C)Yen.
• D)Euro.

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Definitions:

Cognitive Dissonance

A psychological phenomenon involving discomfort felt by an individual when they hold conflicting beliefs, attitudes, or behaviors simultaneously.

Fundamental Attribution Error

The tendency to overemphasize personal characteristics and ignore situational factors in judging others' behavior.

Central Route Change

A persuasive approach that focuses on logical arguments and content, leading to long-lasting attitude change by engaging systematic thinking.

Reactance

A stimulating response to proposals, individuals, regulations, or norms that challenge or remove certain freedoms of behavior.