What Can a Country Introduce If It Wants to Commit

question 2

Multiple Choice

What can a country introduce if it wants to commit itself to converting its domestic currency on demand into another currency at a fixed exchange rate?

• A)A free-float exchange rate system
• B)A clean-float exchange rate system
• C)A pure-float exchange rate system
• D)A currency board
• E)A gold standard

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Definitions:

Ammonia

A colorless gas with a penetrating odor, NH3, which is a byproduct of nitrogenous waste in organisms and used in various industrial processes.

Urea

Nitrogen-containing waste compound derived from ammonia; water is required to excrete it.

Malpighian Tubes

The excretory system of certain arthropods, like insects and spiders, used for removing wastes and maintaining osmotic balance.

Liver

Abdominal organ that produces plasma proteins and bile, filters the blood, and stores glycogen.