Compared to a fixed exchange rate,a monetary union
A) involves soft pegs.
B) does not allow adjustments to exchange rates.
C) is managed at the International Monetary Fund.
D) has no central bank.

Question

Quizplus · Accepted Answer

A monetary union involves a fixed exchange rate between countries that have adopted a single currency. This means that adjustments to exchange rates are not allowed, unlike in a fixed exchange rate system where a country can revalue or devalue its currency to adjust the exchange rate.

Compared to a Fixed Exchange Rate,a Monetary Union