An Institution That Issues a Currency at a Fixed Rate

question 18

Multiple Choice

An institution that issues a currency at a fixed rate in exchange for an equivalent amount of another designated currency and invests the funds in bonds and liquid assets that provide 100 percent backing for the currency units issued is called

• A) a central bank.
• B) the International Monetary Fund.
• C) the World Trade Organization.
• D) a currency board.

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Definitions:

Maturation

The process of becoming mature; the emergence of personal and behavioral characteristics through growth processes.

Strong Eyesight

The ability to see clearly and sharply, often measured in terms of visual acuity, contrast sensitivity, and depth perception.

Birth

The process of being born or giving birth, marking the beginning of life outside the womb.

Molecular Genetics

The field of biology that studies the structure and function of genes at a molecular level.