Which of the following is not a problem that can occur for countries that do not have a central bank?
A) An unsatisfactory currency that leads to fraud and an unredeemable currency
B) A deficit payment system making it difficult to verify a currency for payment
C) A country losing geographical territory with legal disputes
D) Periodic panics associated with currency crises and a lack of regulation for banks with no curbs in risk taking activities and fraud that result in widespread bank failures, contagion, and a widespread recession or depression
E) Having lack of control over the money supply leading to inflation
F) Having no lender of last resort in the event of bank panics and contagion across healthy banks
Correct Answer:
Verified
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