What statutory law introduced the Convertibility Plan in March 1991 under Minister Domingo Cavallo?
Answer and explanation
Correct answer: B. Law 23.928 of Convertibility
- Step 1: The law prohibited monetary financing of fiscal deficits by the Central Bank. Step 2. The Central Bank was required to back 100% of the monetary base with foreign exchange reserves. Answer: Law 23.928 of Convertibility. Why not the others: It eliminated hyperinflation but made the economy vulnerable to external shocks.
Practise more Modern Democratic Milestones, Foreign Relations and Treaties.
Free questions with an explanation for every one, and full timed General Knowledge (Argentina) mock tests.
More Modern Democratic Milestones, Foreign Relations and Treaties questions
- On what date did constitutional democracy return to Argentina with the inauguration of President Raúl Alfonsín?
- Which commission was created by President Alfonsín in December 1983 to investigate human rights disappearances?
- Which unprecedented judicial trial took place in Buenos Aires in 1985, trying former military commanders?
- Which international dispute between Argentina and Chile was resolved by the 1984 Treaty of Peace and Friendship?
- Which regional founding treaty signed on 26 March 1991 created the Mercosur common market?
- Which 1994 diplomatic protocol established the permanent institutional structure of Mercosur?