Which of the following statements is true of pegged exchange rates?
A) A pegged exchange rate allows a country's currency to be determined by market forces.
B) A pegged exchange rate weakens the monetary discipline of a country.
C) Pegged exchange rates are popular among many of the world's smaller nations.
D) Adopting a pegged exchange rate regime increases inflationary pressures in a country.

Question

Quizplus · Accepted Answer

Under a pegged exchange rate regime, a country will peg the value of its currency to that of a major currency. Pegged exchange rates are popular among many of the world's smaller nations.

Which of the Following Statements Is True of Pegged Exchange