A Small Country Might Want to Use the Money of a Large

question 41

Multiple Choice

A small country might want to use the money of a large country rather than print its own money if the small country:

• A) is likely to be unstable, whereas the large country is likely to be stable.
• B) is likely to be stable, whereas the large country is likely to be unstable.
• C) needs the revenue for seigniorage.
• D) wants to control its own inflation rate.

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Definitions:

Lateral Rectus

A muscle in the eye that controls lateral movement of the eyeball, moving it away from the midline.

Superior Oblique

A cranial nerve-controlled muscle in the eye that helps in rotating the eye downwards and outwards.

Superior Rectus

A muscle in the eye that is responsible for upward movement, helping to control the direction in which the eye looks.

Inferior Rectus

A muscle in the eye that primarily aids in looking downward and contributes to the rotation of the eyeball.