How Does a Country That Introduces a Currency Board Make

question 21

Multiple Choice

How does a country that introduces a currency board make its commitment to converting its domestic currency on demand into another currency at a fixed exchange rate credible?

• A) borrowing funds from the International Monetary Fund and the World Bank
• B) maintaining a trade surplus with foreign countries
• C) holding foreign currency reserves equal at the fixed exchange rate to at least 100 percent of the domestic currency issued
• D) importing more goods from foreign countries than it exports
• E) printing foreign currencies

---

Definitions:

Functionalism

A theoretical perspective in the social sciences that focuses on the functions or purposes of various elements of society, understanding each part in terms of how it contributes to societal stability and cohesion.

Industrial/Organizational Psychologist

Professionals specialized in applying psychological principles and methods to workplace issues, aiming to improve productivity, work-life balance, and employee satisfaction.

Psychotherapy

A form of treatment aimed at improving mental health, which involves talking with a therapist to address emotional issues and negative behaviors.

Employee Morale

The overall satisfaction, outlook, and feelings of well-being that an employee has within their workplace environment.