Which of the Following Describes a Currency Basket in Monetary

Multiple Choice

Which of the following describes a currency basket in monetary transaction?

A) an exchange rate system wherein a currency's value is allowed to fluctuate according to the foreign exchange market
B) a contractual provision that says that the price will be adjusted according to the inflation rate
C) a selected group of currencies whose weighted average is used to define the amount of an obligation
D) a scheme for fixing the exchange rate of a currency by matching its value to the value of another single currency