How would you define a currency board?
A) the process by which non-pegged interest rates are allowed to fluctuate
B) the stockpiling of international reserves by developing countries
C) using the dollar to carry out all domestic transactions, making the domestic currency a currency in name alone
D) a constraint placed on monetary policy
E) The monetary bases is backed entirely by foreign currency and the central bank holds no domestic assets.
E
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Which of the following is not a determinant of demand?
a. production costs b. consumer expectations c. prices of related goods d. tastes and preferences of consumers
Hyperinflation can be caused by
A) the central bank selling bonds to the government. B) the government selling bonds to the public. C) the central bank selling bonds to the public. D) the government selling bonds to the central bank.
When banks borrow money from the Federal Reserve, these funds are called
A) federal funds. B) discount loans. C) federal loans. D) Treasury funds.
Liberalism aims to raise the welfare of the worst-off person in society. This rule is called the
a. minimax regret criterion. b. conservative approach. c. Nozick criterion. d. maximin criterion.