Question : Pegging up of currency means, fixing the value of a currency
Option 1: at a constant level
Option 2: at a lower level
Option 3: at a higher level
Option 4: leaving it to market forces
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Correct Answer: at a constant level
Solution : The correct option is at a constant level
Pegging is the practice of tying one currency to the currency of another in order to regulate a nation's exchange rate. A fixed or pegged rate is one that the government's (central bank's) institution establishes and upholds as the standard exchange rate. By maintaining a fixed exchange rate to the currency of another nation, the government or central bank creates a stable exchange rate policy between the two. This practice is known as currency peg.
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