The highest standard deviations are found in:
A)emerging countries where the currency is pegged to the currency of an industrialized nation.
B)emerging countries where currencies are allowed to float freely.
C)industrialized countries where there is great economic activity.
D)industrialized countries where the currency is pegged.

Question

Quizplus · Accepted Answer

Emerging countries where currencies are allowed to float freely often have higher standard deviations due to the increased volatility and uncertainty in their currency markets. Pegging the currency to an industrialized nation's currency can provide stability but can also limit flexibility and prevent the currency from reflecting the true economic conditions of the country. Industrialized countries may also have lower standard deviations due to their more stable and developed economies.

The Highest Standard Deviations Are Found In