If Mexico enters into an agreement with other countries to keep the exchange rate among their currencies fixed it is taking part

Question

3 years ago

7

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.

Social Studies

1 answer:

hram777 [196] · Answer 1 · 2022-06-23T08:49:01+03:00

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.