A Main Purpose of Exchange Stabilization Funds Is To

question 20

Multiple Choice

A main purpose of exchange stabilization funds is to:

• A) Permit a country to overvalue its currency in the exchange markets
• B) Permit a country to undervalue its currency in the exchange markets
• C) Increase the supply of foreign currency when imports exceed exports
• D) Decrease the supply of foreign currency when imports exceed exports

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Definitions:

Priming

A psychological phenomenon whereby exposure to one stimulus influences the response to a subsequent stimulus, without conscious guidance.

Activation

The process in which something is prepared or initiated for use or action, often referring to physiological or neural functions.

Associations

Connections or relationships between thoughts, ideas, or concepts.

Unconscious

According to Freud, a reservoir of mostly unacceptable thoughts, wishes, feelings, and memories. According to contemporary psychologists, information processing of which we are unaware.