When a domestic currency is completely backed by a foreign currency and the note-issuing authority establishes a fixed exchange rate to this foreign currency, then the country is said to have
A) created a currency board.
B) undergone dollarization.
C) adopted a managed exchange system.
D) adopted an exchange rate monetary system.
A
Economics
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Suppose that there is an increase in technology. The classical model predicts that
a. both output and the price level rises. b. output rises and the price level remains the same. c. output rises and the price level falls. d. none of the above.
Economics