Which of the Following Holds True for a Pegged Exchange

question 12

Multiple Choice

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.

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Definitions:

Myosin Head

The globular part of the myosin protein that binds to actin filaments in muscle cells during contraction.

Troponin

A protein complex involved in the regulation of skeletal and cardiac muscle contraction, which binds to calcium ions causing a change that allows muscle contraction.

ATPase Activity

The enzymatic activity involved in hydrolyzing ATP (adenosine triphosphate) to release energy.

Thin Myofilament

A component of the muscle fiber responsible for muscle contraction, composed primarily of the protein actin.