Q80
Pegging the value of a currency can be done by
A.
pegging to a major currency
B.
pegging to a basket of currencies
C.
pegging to SDR
D.
any of the above
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Pegging is controlling a country's currency rate by tying it to another country's currency or steering an asset's price prior to option expiration. Pegging the value of a currency can be done by pegging to a major currency or pegging to a basket of currencies or pegging to SDR.