Multiple Choice
A ratio indicating how safe the peg is from breaking is calculated by _______ and is called ________.
A) foreign reserves as a percent of GDP; the safety margin
B) foreign reserves as a percent of the total money supply; the backing ratio
C) money demand as a percent of money supply; the financial adequacy quotient
D) foreign reserves as a percent of domestic credit; the marginal propensity to break
Correct Answer:
Verified
Correct Answer:
Verified
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