The figure below shows the demand (D) and supply (S) curves of cocoa in the U.S.Figure 21.4

-Which of the following exchange rate systems have a legislative commitment to exchange domestic currency for a specified foreign currency at a fixed exchange rate?
A)Gold standard
B)Gold exchange standard
C)Crawling band
D)Horizontal band
E)Currency board

Question

The figure below shows the demand (D) and supply (S) curves of cocoa in the U.S.Figure 21.4
 
-Which of the following exchange rate systems have a legislative commitment to exchange domestic currency for a specified foreign currency at a fixed exchange rate?
A)Gold standard 
B)Gold exchange standard 
C)Crawling band 
D)Horizontal band 
E)Currency board

Quizplus · Accepted Answer

A currency board has a legislative commitment to exchange domestic currency for a specified foreign currency at a fixed exchange rate.

The Figure Below Shows the Demand (D) and Supply (S)