Expected Depreciation Threatens a Peg Because of All the Following

Multiple Choice

Expected depreciation threatens a peg because of all the following, EXCEPT:

A) when investors expect the peg to fail it will fail in multiple equilibrium situations.
B) market sentiment will raise the currency premium and lower confidence.
C) economic fundamentals are crucial to whether a peg holds or fails.
D) investor confidence may wane and cause a rise in interest rates.