Question: 29
(Choose 1 answer)
How would you define a currency board?
A. the process by which non-pegged interest rates are allowed to fluctuate
B. the stockpiling of international reserves by developing countries
C. using the dollar to carry out all domestic transactions, making the domestic currency a currency in name
alone
D. a constraint placed on monetary policy
E. The monetary base is backed entirely by foreign currency and the central bank holds no domestic assets.
