Under a Hard Peg

Multiple Choice

Under a hard peg,

A) a country has a strict rule of no government intervention to target the nominal exchange rate.
B) only the federal government can alter the nominal exchange rate.
C) a country commits to a fixed nominal exchange rate for an indefinite period of time.
D) only industrialized nations commit to fixed nominal exchange rates.
E) the central bank can alter the value of the exchange rate as required.