Which of the Following Would NOT Maintain a Fixed Exchange

question 274

Multiple Choice

Which of the following would NOT maintain a fixed exchange rate?

• A)trading currency in the foreign exchange market
• B)changing monetary policy to shift the supply and demand curves for its own currency
• C)implementing foreign exchange controls
• D)passing a law requiring that the exchange rate remain fixed

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Definitions:

Simple Reflex

A basic, involuntary response to a stimulus that involves a simple neural pathway.

Secondary Circular Reaction

A developmental phase in infants characterized by repetitive actions aimed at reproducing desirable outcomes, crucial for cognitive development.

Scheme

An organized pattern of thought or behavior that organizes categories of information and the relationships among them.

Primary Circular Reaction

A repetitive action in early child development (around 1-4 months of age) where infants learn to coordinate sensory experiences with new motor activities, focusing mainly on their own bodies.