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32 A country that has an exchange rate system under which its exchange rate is allowed...

32 A country that has an exchange rate system under which its exchange rate is allowed to fluctuate against other currencies within a target zone is using a(n) ________ system.

Multiple Choice

  • fixed peg

  • adjustable peg

  • free float

  • pure float

  • capital float

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Answer #1

1. B. Adjustable peg

When we look at the above paragraph, we can say that the adjustable peg system allows the currency to fluctuate within constraints and the target zone.

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