The Figure Below Shows the Demand (D) and Supply (S)

question 4

Multiple Choice

The figure below shows the demand (D) and supply (S) curves of cocoa in the U.S.Figure 21.4

-What is a currency board?

• A)A fixed exchange rate that, by law, exchanges domestic currency for a specified foreign currency at a fixed exchange rate.
• B)A floating exchange rate.
• C)A managed floating exchange-rate policy that the government adjusts periodically according to some economic indicator.
• D)A laissez-faire exchange-rate policy.
• E)An interventionist exchange-rate policy.

---

Definitions:

Positive Covenant

An agreement in a loan contract that requires the borrower to perform specific actions.

Dividends

Shareholders receive payments from a corporation, typically sourced from its profits.

Coupon Payments

Periodic interest payments made to bondholders during the life of the bond.

Floating Rate Bonds

Bonds that have variable interest rates, adjusting periodically in relation to an index or benchmark rate.