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An Example of a Currency Board Regime Might Be If

Question 9

Multiple Choice

An example of a currency board regime might be if the United States were to pledge to


A) undertake an intervention in the currency market if the US dollar approaches the upper bound.
B) undertake an intervention in the currency market if the US dollar approaches the lower bound.
C) undertake an intervention in the currency market if the euro approaches either the upper or lower bound.
D) convert or exchange US dollars for the euro at any time at a stated fixed price because the euro is the anchor currency of the US dollar.

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