A Country That Introduces a Currency Board Commits Itself to Converting

question 98

Multiple Choice

A country that introduces a currency board commits itself to converting its domestic currency on demand into

• A) another currency at a fixed exchange rate.
• B) gold or silver at a fixed exchange rate.
• C) gold or silver at a floating exchange rate.
• D) another currency at a floating exchange rate.

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Definitions:

Properly Payable Rule

A principle in banking law where banks are only obligated to pay checks that are correctly drawn up and meet all legal requirements.

Electronic Fund Transfer

The electronic transfer of money between accounts, facilitated by a network of computers, allowing for quick and secure transactions without the need for physical exchange of cash or checks.

Wire Transfer

An electronic method of transferring funds directly from one person or entity's bank account to another's across financial institutions.

Integrative Negotiation

A negotiation approach in which the parties’ goals are not seen as mutually exclusive, but the focus is on both sides achieving their objectives.