A Drawback to Using Changes in Domestic Credit to Adjust

Multiple Choice

A drawback to using changes in domestic credit to adjust the domestic money supply to maintain a peg:

A) is problems in emerging market economies as a result of bond market instability.
B) is the lack of expertise in financial matters in the central banks of emerging markets.
C) is the requirement that currencies flip flop from fixed to floating.
D) is that nations are ignoring a potentially more effective source of currency adjustment.