Problem
1. What is a currency board? Describe the strict rules about the composition of reserves and domestic credit that apply to this type of monetary arrangement.
2. What is a lender of last resort and what does it do? If a central bank acts as a lender of last resort under a fixed exchange rate regime, why are reserves at risk?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.