To Maintain the Peg, a Nation Must Keep Its Money

question 126

Multiple Choice

To maintain the peg, a nation must keep its money supply constant, which it does by:

• A) buying and selling foreign reserves and domestic assets for its own currency.
• B) requiring all banks to back deposits 100%.
• C) backing the currency by foreign reserves 100%.
• D) selling only foreign reserves for its own currency.

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Definitions:

Astigmatism

A common vision condition caused by an irregular curvature of the cornea or lens, leading to blurred vision.

Myopia

A common vision condition characterized by difficulty in seeing distant objects clearly, often referred to as nearsightedness.

Dacryoma

A tumor of the lacrimal sac or gland, often related to the tear production system.

Chalazion

A small, usually painless, lump or swelling on the eyelid, caused by a blockage in one of the oil glands.