Question

A currency board is:

Select one:

A. a structure, rather than a mere commitment, to limiting the growth of the money supply in the economy.

B. designed to eliminate the power of politicians to exercise judgment by relying on an automatic and unbendable rule.

C. a recipe for conservative and prudent financial management.

D. all of the above

Answer 1

The correct answer is Option D

• it is a monitory athority and it maintaining fixed exchange rate with another currency of foriegn nations.
• Currency boards are gproviding a fixed exchange rate and it encouraging investment and trade
• in an economic crisis, it can cause damage by controlling monitory policy of a nationn
• it is a structure, rather than a mere commitment, to limiting the growth of the money supply in the economy
• Designed to eliminate the power of politicians to exercise judgment by relying on an automatic and unbendable rule
• it is a recipe for conservative and prudent financial management