(Figure: Central Bank Balance Sheet) All Points on the Floating

question 115

Multiple Choice

(Figure: Central Bank Balance Sheet) All points on the floating line are so named because:

• A) at every point on the line, the supply of money is equal to bond holdings so that reserves are equal to zero.
• B) at every point above the line, the exchange rate floats.
• C) at every point below the line, the exchange rate is backed 100% by reserves.
• D) exchange rates can only float if the economy is "on" the floating line.

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Definitions:

Leadership Styles

The various approaches and methods leaders use to motivate, guide, and manage their teams, such as authoritarian, democratic, and laissez-faire.

Follower's Needs

The requirements or desires of individuals who follow or are led by others, influencing their satisfaction and performance.

Path-goal Theory

A leadership theory that suggests that the leader's job is to assist followers in attaining their goals and to provide the necessary direction and support to ensure that their goals are compatible with the overall objectives of the group or organization.

Path-Goal Theory

A theory that emphasizes how leaders can increase subordinate satisfaction and performance by clarifying the paths to goal achievement.