limits the ability of the government to print money and, thereby, create inflationary pressures. Group of answer choices A dirty-float system A managed-float system The European Monetary System A currency board system

Explanation

A monetary system in which a fixed exchange rate is maintained with a foreign currency.  

In this system central bank is exempted from managing the exchange rate and money supply.  Currency board maintains the reserves of the underlying currency.

In this system exchange rate and money supply is carried out by the currency board. The board evaluates national currency and can back it with foreign currency, if it decides to back all the national currency with foreign currency then it is known as hundred percent reserve requirement.  

Its main disadvantage is that it doesn't allows the government to set the interest rates or print money. The interest rates are determined by a country's economic conditions

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