A country can adopt a fixed exchange rate system through:

Question

Quizplus · Accepted Answer

A fixed exchange rate system can be adopted by setting up a currency union, such as the Eurozone in which member countries use a common currency with a fixed exchange rate. The other options listed do not necessarily lead to a fixed exchange rate system. Allowing a freely functioning foreign exchange market can lead to a floating exchange rate system, removing the asset backing of the currency could result in a fiat currency system, and engaging in trade with other countries does not necessarily determine the exchange rate system.

A Country Can Adopt a Fixed Exchange Rate System Through