When a Domestic Currency Is Completely Backed by a Foreign

question 9

Multiple Choice

When a domestic currency is completely backed by a foreign currency and the note-issuing authority establishes a fixed exchange rate to this foreign currency,then the country is said to have

• A)created a currency board.
• B)undergone dollarization.
• C)adopted a managed exchange system.
• D)adopted an exchange rate monetary system.

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Definitions:

Social Life

The interactions and relationships individuals have with each other within a society, forming the basis of social structure and culture.

Structuralism

An approach in philosophy and social sciences that focuses on analyzing societal structures and the underlying patterns that shape human behavior and culture.

Linguistics

The scientific study of language, including its structure, function, and development, encompassing various aspects such as phonetics, syntax, and semantics.

Jean-Paul Sartre

A French existentialist philosopher, playwright, novelist, and critic who emphasized freedom, choice, and the responsibility of the individual.