Multiple Choice
Which of the following is a characteristic of a currency board?
A) A currency board focuses on maintaining a floating exchange-rate.
B) A currency board issues domestic currency liabilities only in exchange for foreign currency assets.
C) A currency board frequently carries out sterilized intervention in order to maintain the fixed rate.
D) A currency board insulates the country from adverse foreign shocks by prescribing effective fiscal and regulatory policies.
Correct Answer:
Verified
Correct Answer:
Verified
Q16: Which of the following is true of
Q17: _ attempts to establish a fixed exchange-rate
Q18: _ fixed the exchange rates of Germany,
Q19: One of the benefits of the European
Q20: "A country that initially has a floating
Q22: In 2010, _ dollarized to escape from
Q23: One way for a country to gain
Q24: Which of the following is most likely
Q25: Argentina's experience since 1990 suggests that adopting
Q26: Intervention to defend a fixed exchange rate