A pegged exchange rate system is one in which the value of a currency is set relative to the value of another (or to the value of a basket of currencies) at a specified rate.

Question

Quizplus · Accepted Answer

A pegged exchange rate system is indeed where a country fixes its own currency value to that of another currency or to a basket of other currencies, maintaining this set rate rather than allowing it to fluctuate freely in the foreign exchange market.

A Pegged Exchange Rate System Is One in Which the Value