If a Country Sets a Pegged Exchange Rate That Is

question 107

Multiple Choice

If a country sets a pegged exchange rate that is above the equilibrium exchange rate, how can the country maintain the peg?

• A)by purchasing surplus domestic currency at the pegged rate
• B)by selling surplus domestic currency at the pegged rate
• C)by purchasing surplus domestic currency at the equilibrium exchange rate
• D)by increasing the pegged exchange rate
• E)by increasing capital outflows

---

Definitions:

Informative Memos

Internal communications within an organization intended to inform employees or members about specific topics or updates.

Reader Benefits

The advantages or valuable information a reader gains from engaging with a piece of writing or content.

Informative Message

Communication that is intended to convey knowledge, data, and facts to help the audience understand a subject better.

Further Correspondence

Additional communication or exchanges of information that follow initial discussions or meetings.