Developing nations with more than one major trading partner tend to peg the value of their currencies to
A) gold.
B) silver.
C) a single currency.
D) a basket of currencies.

Question

Quizplus · Accepted Answer

Developing nations with more than one major trading partner tend to peg the value of their currencies to a basket of currencies to reduce the risk of economic instability from fluctuations in any one currency. Pegging to a basket of currencies also provides a level of flexibility and stability in trade relations with multiple partners.

Developing Nations with More Than One Major Trading Partner Tend