​The Interest Rate of a Country with a Currency Board

question 69

Multiple Choice

​The interest rate of a country with a currency board:

• A) ​is less stable than it would be without a currency board.
• B) ​is typically below the interest rate of the currency to which it is tied.
• C) ​will move in tandem with the interest rate of the currency to which it is tied.
• D) ​is completely independent of the interest rate of the currency to which it is tied.

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Definitions:

Fewest Side Effects

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Phenothiazines

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Major Tranquilizers

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