Under a currency board system
A) inflation rates are maintained at a high level.
B) countries issue domestic notes at will.
C) interest rates remain constant.
D) the government lacks the ability to set interest rates.

Question

Quizplus · Accepted Answer

Under a currency board system, the government lacks the ability to set interest rates. Interest rates in Hong Kong, for example, are effectively set by the U.S. Federal Reserve.

Under a Currency Board System