The fixing of East and West Germany's currencies at a 1:1 ratio to each other during the German unification in 1990 is an example of a _____.
A) managed float rate policy
B) floating rate policy
C) target exchange rate policy
D) fixed exchange rate policy

Question

The fixing of East and West Germany's currencies at a 1:1 ratio to each other during the German unification in 1990 is an example of a _____.
A) managed float rate policy 
B) floating rate policy 
C) target exchange rate policy 
D) fixed exchange rate policy

Quizplus · Accepted Answer

The fixing of East and West Germany's currencies at a 1:1 ratio to each other is an example of a fixed exchange rate policy, as the exchange rate between the two currencies was fixed and did not fluctuate.

The Fixing of East and West Germany's Currencies at a 1:1