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Question:

Akor is a county that has chosen to use a conventional fixed peg arrangement as the country’s exchange rate regime. Under this arrangement, Akor’s exchange rate against the currency to which it pegs:

A may fluctuate around the peg rate.
Explaination

In a conventional fixed peg arrangement, a country pegs its currency within a margin of ±1% versus another currency or a basket that includes the currencies of its major trading or financial partners. Market-determined exchange rates are a characteristic of an independently floating exchange rate regime.