In which kind of exchange rate is the value of the currency fixed relative to a reference currency, and then the exchange rate between that currency and other currencies is determined by the reference currency exchange rate?
A)Flexible
B)Pegged
C)Real
D)Dirty-float
E)Floating

Question

Quizplus · Accepted Answer

Many of the world's developing nations peg their currencies, primarily to the dollar or the euro. A pegged exchange rate means the value of the currency is fixed relative to a reference currency, such as the U.S. dollar, and then the exchange rate between that currency and other currencies is determined by the reference currency exchange rate.

In Which Kind of Exchange Rate Is the Value of the Currency