Argentina could reduce the supply of money and help out ailing banks without abandoning its peg because:
A) Argentina got long-overdue help from the IMF.
B) Argentina had adequate foreign currency reserves to be able to draw them down.
C) Argentina's central bank financed the help by buying more Argentinian bonds.
D) Argentina temporarily suspended convertibility but eventually restored it.

Question

Quizplus · Accepted Answer

Argentina had adequate foreign currency reserves to be able to draw them down, which would reduce the supply of money and help out ailing banks without abandoning its peg.

Argentina Could Reduce the Supply of Money and Help Out