An Unsterilized Intervention in Which the Central Bank Sells Foreign

question 91

Multiple Choice

An unsterilized intervention in which the central bank sells foreign assets to purchase domestic currency will result in

• A)higher domestic interest rates.
• B)lower domestic interest rates.
• C)an increase in the money supply.
• D)lower domestic interest rates and an increase in the money supply.

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Definitions:

Skimming

A high pricing strategy, generally used for new products or services that face very little or even no competition.

No Competition

A market condition or business scenario where a company faces little to no competition in its industry or for its products.

McClelland's Three Needs Theory

A motivational theory that suggests individuals are driven by three primary needs: the need for achievement, the need for affiliation, and the need for power.

Management Styles

The various strategies and approaches used by leaders to direct, motivate, and plan the activities of their team members.