Under What Circumstances Will a Peg Have a Longer Grace

Multiple Choice

Under what circumstances will a peg have a longer grace period before investors get nervous and dump the currency?

A) when there is no coordinated effort to attack the currency
B) when there is a lower cost to the economy of maintaining the peg
C) when traders and speculators are spread out and small in size with no common belief about the situation
D) when there is no coordinated effort to attack the currency, a lower cost to the economy of maintaining the peg, and when traders and speculators are spread out and small in size with no common belief about the situation