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

Question

Quizplus · Accepted Answer

Under a currency board system, 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