Under an Adjustable Pegged System, Market Exchange Rates Are Intended

question 39

True/False

Under an adjustable pegged system, market exchange rates are intended to be maintained within a narrow band around a currency's official exchange rate.In the case of fundamental disequilibrium, the currency can be devalued or revalued to promote current-account equilibrium.

---

Definitions:

Ventricles

Chambers of the heart that receive blood from the atria and expel it to the lungs and rest of the body, or, in brain anatomy, cavities filled with cerebrospinal fluid.

Refractory Period

Period following effective stimulation during which excitable tissue, such as heart muscle, fails to respond to a stimulus of threshold intensity.

Cardiac Muscle

Muscle tissue found only in the heart, characterized by its ability to contract involuntarily and rhythmically.

Tetanic Contractions

Sustained muscle contractions that occur when the muscles do not relax between stimuli, leading to a smooth and steady contraction.