One of the Problems Associated with Currency Boards Is That

question 102

Multiple Choice

One of the problems associated with currency boards is that if local inflation rates remain higher than the inflation rate in the country to which the currency is pegged than ______.

• A) the country's currency can come under attack by speculators
• B) the country's interest rates can only be set with the agreement of the country to which the currency is pegged
• C) the country's monetary demand may increase faster than monetary supply
• D) the country's trade surplus may increase causing trading partners to apply tariffs and other trade barriers
• E) the country's currency may become over valued and reduce the country's international competitiveness

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Definitions:

Touch Pad

A touch-sensitive interface used as an input device for computers and other electronic devices, allowing users to control and navigate by touch.

Mouse

A hand-operated electronic device that controls the coordinates of a cursor on your computer screen as you move it around on a pad.

PID

Stands for Proportional-Integral-Derivative, a control loop feedback mechanism widely used in industrial control systems to regulate temperature, flow, pressure, speed, and other variables.

J1587

The software multiplexing protocols used by first-generation truck data bus backbones; retained as auxiliary bus in the J1939 data bus up to 2010.