Which of the following holds true for a pegged exchange rate system?
A. Adopting a pegged exchange rate regime increases inflationary pressures in a country.
B. It is necessary for a country whose currency is chosen for the peg to pursue a sound monetary policy.
C. Pegged exchange rates are popular among many of the world's largest and developed nations.
D. The value of a pegged currency falls when the reference currency rises in value.
E. It is similar to a floating exchange rate system rather than a fixed system.
B
You might also like to view...
The ________ is a measure of a company's ability to pay its current liabilities from cash and cash equivalents
A) cash conversion cycle B) cash ratio C) gross profit D) debt equity ratio
In the example of "Checkout Groceries," the primary actor is the customer
Indicate whether the statement is true or false