Asked by Madison Schmitz on Jul 25, 2024
Verified
Several countries in the world today peg their currencies to the U.S. dollar, causing those currencies' values to fluctuate as the U.S. dollar fluctuates.
Pegged Currencies
A regime where a country's currency value is fixed relative to another currency or a basket of currencies.
U.S. Dollar
The official currency of the United States, widely used as a benchmark and reserve currency around the world.
- Understand the consequences of fluctuations in exchange rates on international commerce and monetary transactions.
Verified Answer
AP
Anessa PierreJul 29, 2024
Final Answer :
True
Explanation :
Many countries peg their currencies to the U.S. dollar to stabilize their exchange rate, which means their currency value changes in relation to the U.S. dollar's performance.
Learning Objectives
- Understand the consequences of fluctuations in exchange rates on international commerce and monetary transactions.