If a government chooses as a policy to limit or prohibit fluctuations in exchange rates, it will choose:

a. to allow its currency to rise or fall in price, depending on a variety of supply and demand factors.

b. to fix, or peg, the value of its currency to some base currency over a sustained period.

c. to prohibit purchases and sales of its currency.

d. to allow the rate to be set by international banks.