A currency board
A. monitors conditions imposed by the International Monetary Fund (IMF) when it makes a loan to a country.
B. establishes a fixed exchange rate by holding only foreign-currency assets and exchanging foreign currency for domestic currency.
C. was a key mechanism in the process of European Monetary Union
D. establishes the equivalent of a strong fixed exchange rate by mandating the domestic use of a foreign currency.
Answer: B
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A competitive firm's long-run supply curve is
a. horizontal at the firm's break-even price. b. steeper than its long-run marginal cost curve. c. identical to its long-run average cost curve. d. more elastic than its short-run supply curve.
A currency is undervalued if its exchange rate vis-à-vis a foreign currency is:
A) not pegged. B) at the equilibrium exchange rate. C) above the equilibrium exchange rate. D) below the equilibrium exchange rate.
Which of the following lowers the equilibrium price of a canoe?
A) an increase in the supply of canoes B) an increase in the demand for canoes C) an increase in the quantity of canoes supplied D) a decrease in the supply of canoes E) Both answers A and B are correct.
Which of the following statements is true?
A) A bar chart has many limitations in comparison to pie charts. B) A bar chart does not allow for the comparison of a single variable across many segments. C) A bar chart can only be used to represent independent variables. D) A bar chart indicates the frequency of a variable by using rectangles of different heights or lengths.