Questions
Single choice
A ‘currency board’ is:
Options
A.a. a currency with its exchange rate fixed by the board of directors of the central bank
B.b. an arrangement that is based on an explicit legislative commitment to exchange the domestic currency for a specified foreign currency at a fixed exchange rate
C.c. currency sold on an open outcry exchange
D.d. a floating exchange rate
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Question: A ‘currency board’ is:
Option a: 'a currency with its exchange rate fixed by the board of directors of the central bank' This describes a central bank setting or commitment, but a currency board operates with a legal commitment that ties the domestic currency to a foreign anchor and does not vest the fixing of the rate in a central bank board's discretionary fixes. It is m......Login to view full explanationLog in for full answers
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