To defend a pegged exchange rate that overvalues its currency,a country could:
A) Discourage commodity exports
B) Encourage commodity imports
C) Purchase its own currency in international markets
D) Sell its own currency in international markets

Question

Quizplus · Accepted Answer

To defend a pegged exchange rate that overvalues its currency, a country would purchase its own currency in international markets to increase demand and maintain the pegged rate.

To Defend a Pegged Exchange Rate That Overvalues Its Currency,a