Several countries in the world today peg their currencies to the U.S. dollar, causing those
currencies' values to ﬂuctuate as the U.S. dollar ﬂuctuates.

Question

Quizplus · Accepted Answer

This statement is true. When a country pegs its currency to the U.S. dollar, it means that the country has decided to fix the exchange rate of its currency to the U.S. dollar. As a result, any fluctuations in the value of the U.S. dollar will also affect the value of the pegged currency.

Several Countries in the World Today Peg Their Currencies to the U.S