A(n)_____ system refers to an exchange rate system under which a country's exchange rate is allowed to fluctuate against other currencies within a target zone.
A) free float
B) fixed peg
C) adjustable peg
D) pure float
E) capital float

Question

Quizplus · Accepted Answer

An adjustable peg system is a type of exchange rate system where a country's exchange rate is allowed to fluctuate against other currencies within a target zone. This system allows for some flexibility in the exchange rate, but still maintains a certain degree of control and stability by setting a target zone within which the exchange rate is expected to stay.

A(n)_____ System Refers to an Exchange Rate System Under Which