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If a Country Adopts a Currency Board Arrangement, a Result

Question 20

Multiple Choice

If a country adopts a currency board arrangement, a result is that the country's money supply __________ be increased by the purchase of domestic assets from the country's citizens by the country's central bank; in this arrangement, the country's money supply __________ be increased by the purchase of foreign assets from the country's citizens by the country's central bank.


A) can; also can
B) can; cannot
C) cannot; can
D) cannot; also cannot

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