Adoption of a Currency Board

question 50

Multiple Choice

Adoption of a currency board

• A) is one method for achieving a soft peg policy.
• B) places responsibility for exchange rate management in the hands of an agency that is independent of political influences.
• C) mandates the use of currency in all domestic transactions.
• D) requires that a centralized institution holds interest-bearing assets denominated in the currency against which the nominal exchange rate is being fixed.
• E) mandates how the seigniorage revenue from the printing of money is to be distributed.

---

Definitions:

Hostile Messages

Communications intended to harm, offend, or create a negative atmosphere.

Condom

A thin rubber sheath worn on a man's penis during sexual intercourse as a contraceptive or as a protection against infection.

Monogamous

Referring to a relationship or marriage with one partner at a time, or the practice of having only one sexual partner.

Birth Control

A method or device used to prevent pregnancy.