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:

Estrogen

A group of steroid hormones that promote the development and maintenance of female characteristics in the human body.

Serotonin

A neurotransmitter in the brain playing key roles in mood regulation, sleep, and digestion, among other functions.

Inward

Directed or moving towards the inside, or focusing on internal thoughts and feelings rather than external stimuli.

Negative Emotions

Feelings that are perceived as harmful to the individual's mental well-being, such as sadness, anger, and fear.