A currency board
a. issues domestic currency in exchange for foreign currency at an exchange rate of its choosing.
b. is responsible for the conduct of the nation's monetary policy.
c. promises to continue redeeming the issued currency at a fixed rate.
d. does all of the above.
C
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A price setter is a firm that:
A. has some degree of control over its price. B. has the ability to set price at any level it wishes. C. attempts but fails to be perfectly competitive. D. faces perfectly inelastic demand.
If the money supply is $3,000, velocity is 4 and the price level is $2, then Real GDP is _____________ units of output. If the money supply doubled over a short time period to $6,000, the simple quantity theory of money would predict that ______________________
A) 3,000; the price level would double B) 6,000; Real GDP would double C) 625; the price level would be cut in half D) 6,000; the price level would double
Which of the following is the best example of a broad money?
A. a Treasury bond B. a valuable painting C. a money market account D. all of the above
The incentives built into nearly all welfare programs
A. discourage family planning. B. encourage savings. C. encourage marriage. D. encourage work.