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:

Body Mass Index

A numerical computation using height and weight to categorize an individual as underweight, normal weight, overweight, or obese.

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Foods that are pleasing and delicious to the palate.

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The amount of food consumed by an individual or organism, usually measured over a specific period of time.

Set-Point

The concept that every person possesses a genetically predetermined set of weight and temperature boundaries that their body aims to regulate in order to remain in peak health condition.