Q1. In monetary policy commentary, the term 'hawkish stance' of a central bank such as the U.S. Federal Reserve most precisely refers to which one of the following?
- A. A bias towards keeping policy interest rates higher for longer to contain inflation, and a reluctance to cut rates
- B. Aggressive open-market purchases of government securities to expand the central bank's balance sheet
- C. Direct intervention in the foreign exchange market to defend the value of the domestic currency
- D. Lowering of the reserve requirement on commercial banks to stimulate credit growth