Multiple Choice
Which of the following is true?
A) If an exchange rate is allowed to vary across a fixed basket of currencies, it is called a hard peg.
B) If an exchange rate is not allowed to vary against the target currency, it is called a soft peg.
C) If an exchange is only allowed to fluctuate within a set band, it is considered to be a flexible exchange rate system.
D) A soft peg is when a currency's exchange rate is only allowed to fluctuate within a set band.
Correct Answer:
Verified
Correct Answer:
Verified
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