If a Country's Currency's External Value Is Tied or Pegged

question 6

Multiple Choice

If a country's currency's external value is tied or pegged to the currency values of the country's leading trading partners, this arrangement is known as a

• A) peg against the SDR.
• B) managed float.
• C) peg against a "basket" of currencies or a "composite."
• D) currency board.

---

Definitions:

Cohesive Groups

Social or work groups that are closely united and exhibit strong levels of commitment to each other, fostering high group morale.

Fresh Perspectives

New or unique viewpoints and insights that can lead to innovative solutions or approaches to problems.

Groupthink

A phenomenon that occurs within a group of people, where the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Organizational Politics

The use of power and social networking within an organization to achieve changes that benefit the individual or the organization.