Which of the Following Is Considered to Be a Goal

question 131

Multiple Choice

Which of the following is considered to be a goal of monetary policy?

• A) a low federal budget deficit
• B) fair wages
• C) price stability
• D) an end to poverty

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Definitions:

Foreign-Exchange Reserves

Stockpiles of foreign currencies maintained by a nation’s central bank. Obtained when the central bank sells local currency in exchange for foreign currency in the foreign exchange market.

Terms of Trade

This refers to the ratio at which a country's exports are exchanged for its imports, influencing the country's economic health.

Real Interest Rates

The interest rate adjusted for inflation, representing the true cost of borrowing and the real yield to lenders.

British Pound

The United Kingdom's currency, a major global currency involved in international trading.