Question

If Mexico enters into an agreement with other countries to keep the exchange rate among their currencies fixed it is taking part​ in: A. a managed float​ exchange-rate system. B. a gold standard​ exchange-rate system. C. a fixed​ exchange-rate system. D. a floating currency​ exchange-rate system.

Answer 1

Answer:

Option C, a fixed​ exchange-rate system, is the right answer.

Explanation:

Another term for the Fixed Exchange Rate is the pegged exchange rate. Following this exchange rate management, the currency of a nation is tied to the value of another individual currency such as the dollar or a basket of money, for instance, euro or to gold.  The main aim of this rating system is to keep the value of a currency within a narrow band.