During 1991, Argentina's monetary law had a currency board. Explain and give an example
What will be an ideal response?
The currency board is monetary base backed entirely by foreign currency and the central bank therefore held no domestic assets. An example of currency board is 100% foreign exchange backing for monetary base.
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Real income can be measured by
A) the slope of the budget line. B) the area under the budget line. C) the length of the budget line. D) an intercept of the budget line.
Under perfect competition, which of the following are equal at all levels of output?
A. price and marginal cost B. price and marginal revenue C. marginal cost and marginal revenue D. marginal cost and short-run average total cost
In the short run, the price charged by a monopolistically competitive firm attempting to maximize profits:
A. must be less than ATC. B. must be more than ATC. C. may be either equal to ATC, less than ATC, or more than ATC. D. must be equal to ATC.
People in other countries want to hold U.S. dollars as a
A. standard of deferred payment. B. unit of account. C. medium of exchange. D. store of value.