If the Central Bank Desires to Purchase Additional Domestic Bonds

question 127

Multiple Choice

If the central bank desires to purchase additional domestic bonds to stimulate the economy, then to maintain the peg, what must it do?

• A) Decrease domestic spending.
• B) Sell enough reserves to keep the interest rate unchanged.
• C) Convince the public and investors that the peg is credible.
• D) Immediately lower domestic rates of interest.

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Definitions:

Urine Samples

Specimens of urine collected for medical testing to diagnose diseases or monitor conditions.

Control Samples

Specimens or materials used as a standard of comparison for checking the results of an experiment or test.

Positive And Negative

Terms used to describe the presence or absence of a condition or property, often used in scientific and medical testing.

Oculars

Refers to the eyepieces on optical devices, such as microscopes and telescopes, that magnify images for viewing.