How Does a Country That Introduces a Currency Board Make

question 21

Multiple Choice

How does a country that introduces a currency board make its commitment to converting its domestic currency on demand into another currency at a fixed exchange rate credible?

• A)By borrowing funds from the International Monetary Fund and the World Bank
• B)By maintaining a trade surplus with foreign countries
• C)By holding foreign currency reserves equal at the fixed exchange rate to at least 100 percent of the domestic currency issued
• D)By importing more goods from foreign countries than it exports
• E)By printing foreign currencies

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Definitions:

Piriformis

A muscle in the gluteal region of the lower limb, which can sometimes be involved in sciatic nerve compression.

Iliacus

A muscle located in the pelvis, part of the iliopsoas group, important for flexing the hip and stabilizing the lower body.

Sartorius

The sartorius is a long, thin, superficial muscle that runs down the length of the thigh in the human body, known for being the longest muscle.

Thorax Muscle

Refers to the muscles located in the chest region that assist with the breathing process and support upper body movements.