Countries most likely to use a pegged currency system are those that:
A)have a small economy with a dominant trading partner with a stable currency.
B)have highly structured labor markets and monetary policies.
C)offer attractive investment opportunities for foreign entities.
D)seek as little outside interference from the rest of the world as possible.

Question

Quizplus · Accepted Answer

Countries with a small economy that heavily depend on a dominant trading partner with a stable currency are more likely to adopt a pegged currency system as it provides stability in international trade and reduces the risks associated with currency fluctuations.

Countries Most Likely to Use a Pegged Currency System Are