Pegged exchange rate regime increases inflationary pressures

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Which of the following holds true for a pegged exchange rate system? Select one: 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.

Reference no: EM13963967

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