An exchange rate regime that allows the currency to appreciate gradually over time but within a specified limited band set by government is a:
A) partial floating regime.
B) floating rate regime.
C) managed floating regime.
D) crawling peg regime.

Question

Quizplus · Accepted Answer

A crawling peg regime is a type of exchange rate regime in which a country's exchange rate is pegged to another currency or basket of currencies, but with a provision for the exchange rate to be adjusted periodically within a certain range or "crawl" rate. This allows for some flexibility in the exchange rate while still maintaining some stability.

An Exchange Rate Regime That Allows the Currency to Appreciate