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Question
Which of the following holds true for a pegged exchange rate system?A.Adopting a pegged exchange rate regime increases inflationary pressures in a country.
B.It is necessary for a country whose currency is chosen for the peg to pursue a sound monetary policy.
C.Pegged exchange rates are popular among many of the world's largest and developed nations.
D.The value of a pegged currency falls when the reference currency rises in value.
E.It is similar to a floating exchange rate system rather than a fixed system.
Answer
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