Small nations (e.g.,Tanzania) with more than one major trading partner tend to peg the value of their currencies to:
A) Gold
B) Silver
C) A single currency
D) A basket of currencies

Question

Quizplus · Accepted Answer

Small nations with more than one major trading partner tend to peg the value of their currencies to a basket of currencies. This helps to reduce the risk of relying too heavily on one specific trading partner and can provide some stability to the currency's value in the international market. Pegging to a basket of currencies also makes it easier for the government to adjust the exchange rate if necessary.

Small Nations (E