_____ is an adjustable peg that provides substantial leeway for a country's monetary authority to change or abandon the fixed value.
A)Hard peg
B)Currency board
C)Soft peg
D)Dollarization

Question

Quizplus · Accepted Answer

Soft peg is an adjustable peg that allows the monetary authority of a country to have some flexibility in changing the fixed value. This type of peg does not require the extreme commitment of maintaining a stable exchange rate, unlike a hard peg or a currency board. Soft pegs can be adjusted or abandoned when necessary, in response to changing economic conditions or external shocks. Dollarization, on the other hand, means replacing a country's domestic currency with the U.S. dollar, while a currency board is a more rigid form of a fixed exchange rate regime where the monetary authority has to back every unit of domestic currency with a corresponding unit of a foreign currency.

_____ Is an Adjustable Peg That Provides Substantial Leeway for a Country's