If a Central Bank Does Not Want to See Its

question 97

Multiple Choice

If a central bank does not want to see its currency fall in value,it may pursue ________ monetary policy to ________ the domestic interest rate,thereby strengthening its currency.

• A)expansionary;raise
• B)contractionary;raise
• C)expansionary;lower
• D)contractionary;lower

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Definitions:

Gain on Sale

The profit realized from the sale of assets that exceeds the book value of those assets.

Other Comprehensive Income

Income that is not included in net income, including items that are not realized, such as foreign currency translation adjustments and unrealized gains or losses on investments.

Current Period Profit or Loss

The net income or loss for the current reporting period, reflecting the financial performance of an entity over that timeframe.

Gain or Loss

Financial terms indicating the positive or negative financial result of transactions or events affecting the company's assets, liabilities, or equity.