The figure below shows the demand (D) and supply (S) curves of cocoa in the U.S.Figure 21.4

-Under the _____ arrangement, the exchange rate is adjusted periodically by small amounts at a fixed, pre-announced rate or in response to certain indicators.
A)currency board
B)crawling peg
C)reserve currency
D)conventional fixed peg
E)independent float

Question

The figure below shows the demand (D) and supply (S) curves of cocoa in the U.S.Figure 21.4
 
-Under the _____ arrangement, the exchange rate is adjusted periodically by small amounts at a fixed, pre-announced rate or in response to certain indicators.
A)currency board 
B)crawling peg 
C)reserve currency 
D)conventional fixed peg 
E)independent float

Quizplus · Accepted Answer

Under the crawling peg arrangement, the exchange rate is adjusted periodically by small amounts at a fixed, pre-announced rate or in response to certain indicators. This type of exchange rate system allows for more flexibility than a conventional fixed peg but still provides some stability to the exchange rate.

The Figure Below Shows the Demand (D) and Supply (S)