Which of the following is a characteristic of a currency board?
A. A currency board issues domestic currency liabilities only in exchange for foreign currency assets.
B. A currency board focuses on maintaining a floating exchange rate.
C. A currency board frequently carries out sterilized intervention to maintain the fixed rate.
D. A currency board insulates the country from adverse foreign shocks by prescribing effective fiscal and regulatory policies.
Answer: A
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Refer to the figure above. In equilibrium, ________
A) Firm 1 will follow Strategy Y, and Firm 2 will follow Strategy X B) Firm 1 will follow Strategy X, and Firm 2 will follow Strategy Y C) both firms will follow Strategy X D) both firms will follow Strategy Y
Once active discrimination ends, it:
A. no longer affects people or markets. B. is quickly forgotten, and efficiency is reached. C. can have long-lasting effects on people and markets. D. None of these is true.
45° line diagrams show how
a. investment varies with income. b. expenditures vary with income. c. investment spending rises when GDP rises. d. GDP is affected by government purchases.
If there is employment discrimination against minorities, this will cause the
a. supply of their services to increase, and their wages to fall. b. demand for their services to decline, and their wages to fall. c. supply of their services to decline, and their wages to rise. d. demand for their services to decline, and their wages to rise.