(Table: Central Bank Balance Sheet) Using the Balance Sheet Provided

question 25

Multiple Choice

(Table: Central Bank Balance Sheet) Using the balance sheet provided, if the central bank issues 100 million more in foreign debt, then:

• A) the backing ratio would be equal to 95%.
• B) the backing ratio would be equal to 105%.
• C) there is no change in the backing ratio.
• D) the backing ratio would decrease to 50%.

---

Definitions:

Behaviourism

A theory in psychology which states that all behaviors are learned through interaction with the environment, emphasizing the importance of observable actions over internal mental states.

Behaviourist

A psychologist who studies and applies theories based on the belief that all behaviors are acquired through conditioning.

Psychoanalytic

Pertaining to a theory of psychology and method of psychotherapy, originally developed by Sigmund Freud, that emphasizes the role of unconscious factors in determining behavior.

Humanist

Humanism is a philosophical stance emphasizing the value and agency of human beings, individually and collectively, often focusing on the pursuit of personal development and human well-being.