单选题

In the classification of currency regimes, a currency board system (CBS) most likely differs from a fixed-rate parity system in that:

A、 a CBS has a discretionary target level of foreign exchange reserves.
B、 a CBS can peg to a basket of currencies but a fixed-rate system cannot.
C、 the monetary authority within a CBS does not act as a traditional lender of last resort.

【正确答案】 C

【答案解析】

C is correct. In a CBS, the monetary authority has an obligation to maintain 100% foreign currency reserves against the monetary base. It thus cannot lend to troubled financial institutions. As long as the country under a fixed-parity regime maintains its exchange peg, the central bank can serve as a lender of last resort.