When Maintaining a Pegged Exchange Rate Fixed Exchange Rate), If

question 38

Multiple Choice

When maintaining a pegged exchange rate fixed exchange rate) , if the central bank runs out of foreign currency reserves, then:

• A) it can always print more of domestic currency.
• B) it can back the money supply by buying domestic assets.
• C) it can sell its own currency and buy foreign currency reserves.
• D) it must allow the domestic currency to float.

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Definitions:

Early Maturation

Early maturation refers to the onset of puberty or the progression through developmental milestones at an earlier age than the typical range for one’s peer group, which can impact psychological and social adjustment.

Socially Approved Activities

Actions or behaviors that are accepted and valued by a society or community.

Sexual Orientation

A preference for partners of one’s own sex (homosexuality), the opposite sex (heterosexuality), or both (bisexuality).

Prenatal Hormones

Hormones present in the womb that play significant roles in the development and differentiation of the fetus.