Adoption of a currency board
A) is one method for achieving a soft peg policy.
B) places responsibility for exchange rate management in the hands of an agency that is independent of political influences.
C) mandates the use of currency in all domestic transactions.
D) requires that a centralized institution holds interest-bearing assets denominated in the currency against which the nominal exchange rate is being fixed.

Question

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The Answer of Adoption of a currency board
A) is one method for achieving a soft peg policy.
B) places responsibility for exchange rate management in the hands of an agency that is independent of political influences.
C) mandates the use of currency in all domestic transactions.
D) requires that a centralized institution holds interest-bearing assets denominated in the currency against which the nominal exchange rate is being fixed.

Adoption of a Currency Board