When the Central Bank Offsets a Fall in Interest Rates

question 28

Multiple Choice

When the central bank offsets a fall in interest rates with the sale of foreign currency reserves, the action is called:

• A) an offsetting movement.
• B) a foreign reserve counteraction.
• C) a central bank inside-out operation.
• D) a nonsterilized intervention.

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Definitions:

Salary

A fixed regular payment, typically expressed as an annual amount, made by an employer to an employee, especially a professional or white-collar worker.

Product Cost

The total expense incurred to produce a product, including costs directly tied to manufacturing such as raw materials and labor, differentiated by highlighting its importance in pricing and profitability analysis.

Insurance Expired

The point at which an insurance policy reaches its end date and is no longer in effect unless renewed.

Factory Equipment

Assets used in a manufacturing or production process, such as machinery and tools.