Under Managed Floating Exchange Rates, Central Bank Intervention Is Used

question 148

True/False

Under managed floating exchange rates, central bank intervention is used to offset temporary fluctuations in exchange rates that contribute to uncertainty in carrying out transactions in international trade and finance.

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Definitions:

Observational Learning

The process of acquiring new behaviors or knowledge by observing the actions of others and the consequences of those actions.

Classical Conditioning

A teaching mechanism involving the link between a stimulus found in the environment and one that naturally exists.

Positive Reinforcer

A stimulus which, when presented after a behavior, increases the likelihood of that behavior being repeated.

Conditioned Stimulus

A conditioned stimulus is a previously neutral stimulus that, after becoming associated with an unconditioned stimulus, elicits a conditioned response.