In Pegged Currency Systems,the Country Fixes Its Currency Value to the Value

question 15

Multiple Choice

In pegged currency systems,the country fixes its currency value to the value of some other stable currency and:

• A)does not interfere with the value of its currency unless it determines that the currency to which its currency is pegged is not performing as expected.
• B)only acts to affect the value of its currency if the value of its currency decreases significantly.
• C)allows its currency value to fluctuate in a narrow band around the fixed value and then takes steps to maintain its currency's value within that band.
• D)only acts to affect the value of its currency if the value of its currency increases significantly.

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Definitions:

Wilhelm Wundt

Often considered the father of modern psychology, he established the first psychology laboratory at the University of Leipzig in 1879.

Psychology

The scientific study of the mind and behavior.

Critical Thinking

The objective analysis and evaluation of an issue in order to form a judgment.

Phrenology

A now-discredited theory that suggested the bumps on the skull could predict mental traits and character.