The long list of central bank goals includes the stability of interest rates and exchange rates. You

Question:

The long list of central bank goals includes the stability of interest rates and exchange rates. You look on the central bank Web site and note that they have increased interest rates at every one of their meetings over the last year. You read the financial press and see references to how the has moved in response to these interest-rate changes. How could you reconcile this behavior with the central bank pursuing its objectives?

Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...