An open peg might be an option for some nations that desire to:
A) close off capital inflows and outflows and fix currency rates.
B) allow the free flow of capital and fix currency rates.
C) allow the free flow of capital with flexible currency rates.
D) close off capital inflows and outflows with flexible currency rates.

Question

Quizplus · Accepted Answer

An open peg system allows for the free flow of capital while fixing currency rates to another currency or a basket of currencies. This system aims to combine the stability of a fixed exchange rate with the economic flexibility allowed by the free movement of capital.

An Open Peg Might Be an Option for Some Nations