When a Central Bank Buys Foreign Currency,its International Reserves ________

question 2

Multiple Choice

When a central bank buys foreign currency,its international reserves ________.

• A) decrease
• B) increase
• C) remain unchanged
• D) are difficult to determine

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Definitions:

Temporal Precedence

The principle that establishes the need for a cause to occur before its effect, crucial in establishing causal relationships in research.

Causation

The action of causing something, indicating a relationship between two events where one directly effects the change in the other.

Behavior

The actions or reactions of an object or organism, often in response to its environment or stimuli.

Alternative Explanations

Other possible interpretations or reasons that could account for observed outcomes or phenomena, challenging the initial hypothesis.