The Use of a Crawling Peg Refers to

question 19

Multiple Choice

The use of a crawling peg refers to

• A) sequentially targeting different currencies as exchange rate pegs
• B) repeated devaluations despite an ostensibly fixed exchange rate
• C) an annual inflation target of 2%, which allows the price level to creep upward at a deliberate pace
• D) an exchange rate band which moves over time according to a planned schedule
• E) the gradually widening gap between the interest rates of 2 countries with a fixed exchange rate, due to a rising risk premium

---

Definitions:

Mid East

Refers to the Middle East, a geographical region that encompasses Western Asia and parts of North Africa, known for its rich culture and historical significance.

Saddam Hussein

Former President of Iraq known for his leadership from 1979 to 2003, marked by oppressive rule, wars, and eventual trial and execution.

Undemocratic Regimes

Undemocratic regimes are governments that do not allow equal participation in political processes, often characterized by the absence of fair elections, limited civil liberties, and centralized control.

Land Reform

involves the redistribution of land from large landowners to those with little or no land, aimed at improving equity and agricultural productivity.