Many countries around the world have opted to join currency unions. Examples include those in the euro area, the CFA franc union in West Africa, and the Caribbean currency union. This involves sacrificing the domestic currency in favor of using a single currency unit in multiple countries Assuming that once a country joins a currency union, it will not leave, do these countries face the policy trilemma discussed in the text? Explain.
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- Many countries around the world have opted to join currency unions. Examples include those in the euro area, the CFA franc union in West Africa, and the Caribbean currency union. This involves sacrificing the domestic currency in favor of using a single currency unit in multiple countries Assuming that once a country joins a currency union, it will not leave, do these countries face the policy trilemma discussed in the text? Explain.
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- To ensure that paper money will be accepted, the U.S. government implicitly promises the public that Group of answer choices it will not change currency denominations so that the paper currencies U.S. citizens have will continue to be used for exchanges. the U.S. monetary system will always be backed by a precious metal. it will not print money so fast that it loses its value. it will not change the rate at which the dollar is exchanged for other currencies.Q3-13 If a country adopts a currency board arrangement, a result is that the country's money supply _______ be increased by the purchase of domestic assets from the country's citizens by the country's central bank.In this arrangement, the country's money supply _______ be increased by the purchase of foreign assets from the country's citizens by the country's central bank. Select one: a. can / can also b. can / cannot c. cannot / can d. cannot / cannotCould you add more information regarding the below statement? "The Federal Reserve System plays a massive role in not only the economy of the united states but alos in the global economy. The US dollar is one of the most popular and well recognized forms of currency all around the world, making it the basis for many financial transactions and trades. This popularity and standardization in regards to the dollar makes it one of if not the most important currency in the world, whose value has implications on nearly every aspect of trade, consumers, and even other countries wellbeing. Because of this, the fed, who has the ability to influence the value of the dollar and the economy, is likely the most important financial institution of the world, because of it's ability to severely impact both positively and negatively the united states economy and the world economy. With the recent inflation, I do think that the fed should take some action to mitigate the risk of any catastrophic…
- Elaborate on the different reasons why African countries are not able to form a monetary union.Give an example in the recent past when the Central Bank intervene in the foreign exchange market in Jamaica and discuss why it intervened.Exchanging dollars for euros to pay a computer manufacturer in Belgium would occur at the European Central Bank. at the Federal Reserve. in the letter of credit market. in the foreign exchange market.
- You are advising a small country on whether to print its own money or to use the money of its larger neighbour. What are the costs and benefits of having your own national currency? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Suppose country A’s goods become more popular with foreign consumers, and country B’s less so. How would this affect each country, assuming that they (a) have their own independent currency and (b) share a common currency? Use the aggregate demand (AD) and aggregate supply (AS) framework to explain your answer, and comment briefly on the desirability of currency union. If you can give an example with countries that would be great.Consider the following extract and answer the questions that follow. El Salvador Becomes the First Country To Adopt Bitcoin As Official Currency After the COVID-19 pandemic, the few remaining limitations to the digital world seem to have disappeared, including the conquest of cryptocurrencies. The definitive step seems to have been El Salvador's decision to transform Bitcoin into the official currency, being the first country in the world to do so. However, as evolved as President Nayib Bukele's decision seemed to be, the reality of bringing the heaviest digital currency into the real world seems destined for chaos. In announcing his move, Bukele claimed that the digital currency would help Salvadorans save an estimated "$400 million," which the government estimates is spent annually on remittance fees, NBC News explained. The government made the Chivo digital wallet available to citizens, claiming it would be available on the App Store and Google Play shortly before noon local time on…
- U S foreign exchange intervention is sometimes done by an Excha U.S. foreign exchange intervention is sometimes done by an Exchange Stabilization Fund, or ESF (a branch of the Treasury Department), which manages a portfolio of U.S. government and foreign currency bonds. An ESF intervention to support the yen, for example, would take the form of a portfolio shift out of dollar and into yen assets. Show that ESF interventions are automatically sterilized and thus do not alter money supplies. How do ESF operations affect the foreign exchange risk premium? U S foreign exchange intervention is sometimes done by an ExchaDiscuss THREE monetary strategies currently implemented in the commonwealth of Dominica.The U.S. dollar is still considered the most traded and the most stable currency in the world. It is easily converted over to other currencies when trading and is also the official currency of several U.S. territories. However, a strong U.S. dollar has both advantages and disadvantages. One of the advantages that was already mentioned is that the conversion of the U.S. dollar over to other countries is fairly easy and grants it a greater degree of buying power for foreign products. This also makes foreign imports cheaper not to mention investors benefit when engaging in FDI. The disadvantages of a strong U.S. dollar is that it makes it more expensive for foreign countries to import products from the U.S., which negatively affects industries and business owners within that country as a result. It can even negatively affect the U.S. because those that conduct business internationally will technically earn less from foreign sales if their currency is not fully convertible. Overall, even…