NO.PZ2023071902000053
问题如下：
QuestionWhich economic condition is most conducive to a well-functioning currency board exchange rate system in a country?
选项：
A.Flexible domestic prices and wages B.The supply of global reserve assets is growing rapidly C.Large non-traded sectors解释：
Solution
- Correct. A currency board system operates most effectively when domestic prices and wages are highly flexible, allowing for quick adjustments to changes in the exchange rate.
- Incorrect. A currency board system functions best when the global supply of the reserve asset grows at a stable and moderate rate, aligned with long-term real growth and stable prices.
- Incorrect. A currency board system is more effective in a country with relatively small non-traded sectors in the domestic economy, as it helps to ensure a stronger link between domestic and foreign prices.
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