A(n)______________ is a governing body that manages the value of a currency by holding foreign currency reserves equal to the amount of domestic currency issued at a fixed exchange rate.
A) exchange rate committee
B) currency board
C) certificate board
D) monetary review commission
E) national bank currency committee

Question

Quizplus · Accepted Answer

A currency board is a governing body that manages the value of a currency through a fixed exchange rate system. It holds foreign currency reserves equal to the amount of domestic currency issued, thus ensuring that the exchange rate remains stable. The other options listed do not accurately describe the functions of a currency board.

A(n)______________ Is a Governing Body That Manages the Value of a Currency