Which of the Following Statements Is True of Pegged Exchange

question 95

Multiple Choice

Which of the following statements is true of pegged exchange rates?

• A) A pegged exchange rate allows a country's currency to be determined by market forces.
• B) A pegged exchange rate weakens the monetary discipline of a country.
• C) Pegged exchange rates are popular among many of the world's smaller nations.
• D) Adopting a pegged exchange rate regime increases inflationary pressures in a country.

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