Why can a surge in domestic gold demand complicate a central bank’s efforts to stabilize a depreciating currency?

By Ahmed Akber

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Fact Checked

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Difficulty Hard

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Last Updated 13 Aug 2026

A. It reduces the velocity of money

B. It worsens the current account deficit

C. It increases direct foreign investment

D. It lowers the national interest rate

📚 Topics: International Current Affairs

🎯 Exams: CSS PMS UK_CS US_COMP

🏷️ Tags: International Trade Macroeconomics Monetary Policy

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