A currency system where small adjustments to value of the currency are made at preset points or in response to specific macroeconomic indicators is a:
A)currency board system.
B)crawling peg system.
C)managed float system.
D)independent float system.

Question

Quizplus · Accepted Answer

A crawling peg system involves small, gradual adjustments to the value of the currency at preset intervals or in response to specific economic indicators. A currency board system involves pegging a currency to a foreign currency at a fixed exchange rate with strict rules and regulations in place to maintain that rate. A managed float system involves allowing the market to largely determine the value of the currency, but with some government intervention to prevent extreme fluctuations. An independent float system involves completely allowing the market to determine the value of the currency without government intervention.

A Currency System Where Small Adjustments to Value of the Currency