A Central Bank Holds Foreign Exchange Reserves Primarily For

question 4

Multiple Choice

A central bank holds foreign exchange reserves primarily for:

• A)Diversification purposes
• B)Foreign exchange interventions
• C)Safekeeping
• D)Diversification and safekeeping

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Definitions:

Gratuities

Voluntary payments given for services received, often seen as a token of appreciation.

Equal Protection

A legal principle under constitutional law stating that no individual or group should be denied the same protection of the laws that is enjoyed by others.

Police Discretion

The power or right vested in police officers to make judgments and take action in certain situations without having to make a formal arrest or apply legal sanctions.

Judicial Rule-Making

The process by which courts use judicial decisions to establish new legal principles or clarify existing law.