When the value of a currency is fixed relative to a reference currency,this is referred to as a.
A)variable exchange rate
B)pegged exchange rate
C)linked exchange rate
D)floating exchange rate

Question

Quizplus · Accepted Answer

A pegged exchange rate means the value of the currency is fixed relative to a reference currency,such as the U.S.dollar,and then the exchange rate between that currency and other currencies is determined by the reference currency exchange rate.

When the Value of a Currency Is Fixed Relative to a Reference