Smaller nations with relatively undiversified economies and large trade sectors tend to peg their currencies to one of the world's key currencies.

Question

Quizplus · Accepted Answer

This statement is true. Smaller nations with undiversified economies and large trade sectors often face greater currency instability and choose to peg their currencies to a more stable and widely used currency such as the US dollar, Euro, or British pound.

Smaller Nations with Relatively Undiversified Economies and Large Trade Sectors