The System in Which the Country Pegs Its Currency at a Fixed

question 35

Multiple Choice

The system in which the country pegs its currency at a fixed rate to a major currency or basket of currencies,while the exchange rate fluctuates within a narrow margin around a central rate is called a(n) _____.

• A) spot market
• B) fixed exchange rate system
• C) independent floating exchange rate system
• D) managed floating exchange rate system
• E) foreign exchange market

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Definitions:

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