Under the System of Pegged Exchange Rates, When the Domestic

Multiple Choice

Under the system of pegged exchange rates, when the domestic currency's value presses against the top of its official price range, officials must:

A) sell foreign currency and buy domestic currency.
B) buy foreign currency and sell domestic currency.
C) let the exchange rate change and refrain from intervention in the foreign exchange market.
D) guide the exchange rate to reach the equilibrium rate.