The Interest Rate of a Country with a Currency Board

question 93

Multiple Choice

The interest rate of a country with a currency board:

• A) is less stable than it would be without a currency board.
• B) is typically below the interest rate of the currency to which it is tied.
• C) will move in tandem with the interest rate of the currency to which it is tied.
• D) is completely independent of the interest rate of the currency to which it is tied.

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