In a fixed currency system:
A)the value of the currency is "fixed" in that its value is determined by some anchor,usually another currency.
B)a definite value of the currency is established.
C)the total amount of a currency that can be issued is established and cannot be changed without action by the central bank.
D)the value of the currency is directly linked to the price of gold.

Question

Quizplus · Accepted Answer

In a fixed currency system, the value of a currency is pegged or anchored to another currency or a basket of currencies, maintaining a stable exchange rate.

In a Fixed Currency System