Rather Than Constructing Their Own Currency Baskets,many Nations Peg the Value

question 149

Multiple Choice

Rather than constructing their own currency baskets,many nations peg the value of their currencies to a currency basket defined by the International Monetary Fund.Which of the following illustrates this basket?

• A) IMF tranche
• B) Special Drawing Rights
• C) Primary reserve asset
• D) Swap facility

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Definitions:

Easy Tasks

Activities or jobs that can be completed with minimal effort or difficulty.

Internal Push

An internal motivation or drive that compels an individual to take action or pursue goals.

External Pull

Influences or factors outside an individual that draw or entice them towards certain decisions, actions, or behaviors.

Incentive

Something that motivates or encourages someone to do something or increases the likelihood of a behavior.