When a country establishes one rate as the exchange rate, but allows their currency to fluctuate within a certain percentage of that value, it is said to have
A) parity bands.
B) dollarized.
C) a currency basket.
D) a pegged currency.
Question 2
Fungibility means that
a. donors allow recipients to use aid money for any purpose they want
b. even if aid money is specified for a project, this frees up a similar amount for other uses
c. aid money is given for programs that allow recipients to choose how to use it, within specific limits
d. aid money is given in the local currency so its source is unidentifiable
e. all of the above
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