Chap002 15 - how many countries do not have their own...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
58. A currency board arrangement is A. when the currency of another country circulates as the sole legal tender. B. when the country belongs to a monetary or currency union in which the same legal tender is shared by the members of the union. C. a monetary regime based on an explicit legislative commitment to exchange domestic currency for a specified foreign currency at a fixed exchange rate, combined with restrictions on the issuing authority to ensure the fulfillment of its legal obligation. D. where the country pegs its currency at a fixed rate to a major currency where the exchange rate fluctuates within a narrow margin of less than one percent. 59. Ecuador does not have its own national currency, circulating the U.S. dollar instead. About
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: how many countries do not have their own national currency? A. 10 B. 20 C. 30 D. 40 60. With regard to the current exchange rate arrangement between the U.S. and the U.K., it is best characterized as A. independent floating (market determined). B. managed float. C. currency board. D. pegged exchange rate within a horizontal band. 61. With regard to the current exchange rate arrangement between Italy and Germany, it is best characterized as A. independent floating (market determined). B. managed float. C. an exchange arrangement with no separate legal tender. D. pegged exchange rate within a horizontal band....
View Full Document

Ask a homework question - tutors are online