Adoption of a Currency Board

Multiple Choice

Adoption of a currency board

A) is one method for achieving a soft peg policy.
B) places responsibility for exchange rate management in the hands of an agency that is independent of political influences.
C) mandates the use of currency in all domestic transactions.
D) requires that a centralized institution holds interest-bearing assets denominated in the currency against which the nominal exchange rate is being fixed.
E) mandates how the seigniorage revenue from the printing of money is to be distributed.