Which method can be used to maintain a fixed exchange rate? I. exchange market intervention
II) monetary policy
III) foreign exchange controls

Question

Quizplus · Accepted Answer

All three methods can be used to maintain a fixed exchange rate. Exchange market intervention involves buying or selling currencies to influence exchange rates. Monetary policy adjustments can influence interest rates, affecting currency value. Foreign exchange controls restrict currency transactions, stabilizing exchange rates.

Which Method Can Be Used to Maintain a Fixed Exchange