A Major Advantage of a Specie Standard as an Exchange

question 53

Multiple Choice

A major advantage of a specie standard as an exchange rate regime is

• A) discretionary monetary policy is effective.
• B) the currency is guaranteed to appreciate.
• C) exchange rates are stable.
• D) none of the above.

---

Definitions:

Carotid

Referring to the main arteries in the neck that supply blood to the head and brain.

Radial

Relating to or situated near the radius or forearm; or extending in a direction outward from a common center.

Brachial

Relating to the arm, specifically the upper arm from the shoulder to the elbow.

Calibrating

The process of adjusting and setting the accuracy of a measuring instrument to ensure it meets its specified and intended use.