An institution that issues a currency at a fixed rate in exchange for an equivalent amount of another designated currency and invests the funds in bonds and liquid assets that provide 100 percent backing for the currency units issued is called
a. a central bank.
b. the International Monetary Fund.
c. the World Trade Organization.
d. a currency board.
D
You might also like to view...
Compare and contrast the outcomes with respect to price and output in a monopolistically competitive market and a perfectly competitive market. In which situation are consumers better off? Why?
What will be an ideal response?
Which of the following is true regarding tacit collusion?
A) It is an informal, unstated agreement. B) It is illegal. C) It is more likely to occur when the price elasticity of demand is large. D) It is more likely to occur when barriers to entry are low.
In the long run,
a. a larger budget deficit means a larger money supply b. lower investment spending means slower growth of the standard of living c. a larger budget deficit means lower consumption spending d. a larger budget surplus means a smaller capital stock e. government spending has no effect on the budget deficit or surplus
All of the following are examples of transfer payments except
A) welfare benefits to the poor. B) dividend payments to the wealthy. C) Social Security payments to the elderly. D) unemployment compensation to the unemployed.