How Would You Define a Currency Board

How would you define a currency board?

A) the process by which non-pegged interest rates are allowed to fluctuate
B) the stockpiling of international reserves by developing countries
C) using the dollar to carry out all domestic transactions, making the domestic currency a currency in name alone
D) a constraint placed on monetary policy
E) The monetary base is backed entirely by foreign currency and the central bank holds no domestic assets.

Correct Answer:

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