Question

Which of the following best explains what happens when a currency is pegged to the U.S. dollar? A. The U.S. Treasury gets to determine the exchange rate between U.S. dollars and the pegged currency. B. The pegged currency can be used interchangeably with U.S. dollars to purchase goods and services. C. The value of the pegged currency goes up and down depending on the exchange rate of the U.S. dollar. D. The exchange rate for the pegged currency is exactly the same as the exchange rate of the U.S. dollar.
2b2t

Answer 1

Answer:

The value of the pegged currency goes up and down depending on the exchange rate of the U.S. dollar. ( C.)