When a Country Adopts a Currency Board System

question 105

Multiple Choice

When a country adopts a currency board system:

• A) it no longer needs to hold any reserves.
• B) its reserves equal 100% of its money supply.
• C) it can create money by lending to domestic borrowers.
• D) its reserves must equal 50% of its money supply.

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Definitions:

Circumcision

The surgical removal of the foreskin that covers the glans penis.

Foreskin

The portion of the sleeve-like skin covering the shaft of the penis that extends over the glans penis. Also known as prepuce.

Frenulum

The triangular area of sensitive skin on the underside of the penis, attaching the glans to the foreskin.

Glans

The sensitive bulbous structure at the distal end of the penis or clitoris.