Currency Board Arrangements have full and free convertibility for their currencies, but central banks must match foreign currency reserves with national money supplies

Question

Quizplus · Accepted Answer

Currency Board Arrangements require that a country's central bank holds reserves in foreign currency that are equal to 100% (or a fixed percentage) of the domestic currency issued, ensuring full and free convertibility of the national currency at a fixed exchange rate.

Currency Board Arrangements Have Full and Free Convertibility for Their