When a Country Pegs the Value of Its Currency to the Value

question 46

Multiple Choice

When a country pegs the value of its currency to the value of some other currency,that country:

• A)formally agrees not to adopt economic policies that are inconsistent with those of the country to which the currency is pegged.
• B)by necessity has to follow the macroeconomic policies of the country to which the currency is pegged.
• C)is free to adopt its own economic policy without regard to the economic policies of the country to which the currency is pegged.
• D)is free to adopt its own economic policies but is required to consult with the country to which the currency is pegged.

---

Definitions:

Palliat

Short for palliative, referring to care that focuses on relieving symptoms and improving quality of life for patients with serious illnesses.

Hodgkin Disease

A type of lymphoma characterized by the presence of Reed-Sternberg cells, leading to the abnormal growth of cells in the lymphatic system.

Lymphoma

A type of cancer that begins in the lymphatic system, particularly in lymphocytes, a type of white blood cell.

Seminoma

A type of testicular cancer that arises from sperm-producing cells, known for its responsiveness to radiation therapy.