One possible current currency arrangement is a fixed peg, whereby the exchange rate of a currency is allowed to move (within a narrow band) with another currency. One example is the pegging of the Canadian dollar to the U.S. dollar.

Question

Quizplus · Accepted Answer

The Canadian dollar is not pegged to the U.S. dollar; it operates under a floating exchange rate system where its value is determined by the foreign exchange market.

One Possible Current Currency Arrangement Is a Fixed Peg, Whereby