When the Central Bank Adopts a Currency Board, It Is

question 147

Multiple Choice

When the central bank adopts a currency board, it is considered ______, because a shock to money demand _______.

• A) a hard peg; can be covered at any level without a change in domestic credit
• B) a soft peg; can be absorbed by a change in domestic credit
• C) a reversion to floating rates; is impossible
• D) the reinstatement of a gold standard; cannot be covered any other way

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The final amount at which an item or service is sold after any discounts or deductions.

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Earnings before interest and taxes (EBIT), reflecting the profit a company makes from its operations, before financial and other non-operational costs.

Reduced Price

A lower cost for goods or services, typically offered during sales, discounts, or promotions.

Reduced Price

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