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

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Definitions:

Intense Terror

A feeling of extreme fear that is overwhelming and can cause paralysis or irrational behavior.

Generalized Anxiety Disorder

A mental health disorder characterized by persistent and excessive worry about a number of different things, impacting daily life.

Persistent Anxiety

Ongoing and often excessive worry or fear that interferes with daily activities or mental health, beyond normal stress responses.

Generalized Anxiety Disorder

A mental health condition characterized by persistent and excessive worry about a variety of topics, events, or activities.