Which of the Following Is True

question 6

Multiple Choice

Which of the following is true?

• A)The euro has become the official reserve asset of the world.
• B)A currency board has many of the benefits of full dollarization and, under a currency board, seigniorage is not lost.
• C)In the future, it is expected that the major industrial powers will return to a fixed exchange rate system as they further coordinate monetary policies.
• D)Electronic payments are cheaper and therefore increase the amount of seigniorage earned by the government.

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Definitions:

Deprivation Needs

Basic human needs that must be fulfilled to prevent discomfort or harm, such as food, water, and sleep; derived from the concept in Maslow's hierarchy of needs that when these are unmet, individuals are motivated to satisfy them.

Self-Actualization

The actualization or achievement of one's skills and possibilities, seen as a motivation or necessity found in every person.

Lower-Level Needs

Basic physiological and safety needs in Maslow's hierarchy, which must be satisfied before higher-level needs for love, esteem, and self-actualization can be addressed.

Self-Actualization

A concept in humanistic psychology referring to the realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone.