Which of the Following Is Not an Advantage to a Country

Multiple Choice

Which of the following is not an advantage to a country of choosing to fix its exchange rate against a major currency,rather than choosing a floating exchange rate?

A) Pegging allows the country more flexibility in conducting monetary policy.
B) Pegging helps avoid inflation in imported goods caused by currency depreciation for countries with significant levels of imports.
C) Pegging insures that interest payments stemming from foreign loans do not fluctuate with the value of the currency.
D) Pegging reduces the uncertainty caused by currency fluctuations and thereby simplifies business planning.