10 Views

Question : What is the term used to describe a situation where a country's central bank fixes the value of its currency to another currency at a specified exchange rate?

Option 1: Currency intervention
  

Option 2: Currency hedging
 

Option 3: Currency manipulation

   

Option 4: Currency pegging


Team Careers360 23rd Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: Currency pegging


Solution : The correct answer is d) Currency pegging

Currency pegging refers to a situation where a country's central bank or monetary authority fixes the value of its currency to another currency, often a major currency like the US dollar or the euro, at a specified exchange rate. The purpose of currency pegging is to maintain stability in the exchange rate and provide a predictable environment for international trade and investment. The central bank intervenes in the foreign exchange market as needed to ensure that the currency remains within the specified exchange rate range.

Related Questions

Amity University-Noida B.Tech...
Apply
Among top 100 Universities Globally in the Times Higher Education (THE) Interdisciplinary Science Rankings 2026
Amity University-Noida MBA Ad...
Apply
Ranked among top 10 B-Schools in India by multiple publications | Top Recruiters-Google, MicKinsey, Amazon, BCG & many more.
Narayana Business School MBA/...
Apply
Top 30 Private B-Schools Nationally and Top 3 in Gujarat | Highest CTC- 20 LPA | Average CTC- 8.4 LPA | 40% Pre-Placement Offers | 670+ Recruiters 
Amity University | M.Tech Adm...
Apply
Asia’s only university to be awarded the highest accreditation by WASC, USA and by the Quality Assurance Agency for Higher Education (QAA), UK
JAGSoM PGDM Admissions 2026
Apply
Highest CTC 51.38 LPA | Median CTC 10.32 LPA | Top 25% Average CTC 14.32 LPA
IFMR Graduate School of Busin...
Apply
Application Deadline 15th Jan’26 | UGC Approved Programs | Near 100% Placement Record | Up to 100% Scholarships | Highest CTC 21.32 LPA
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books