(Answered) You learned that there are different types of exchange rate systems. Match the right with the left…

➤ Why choose a hard peg or currency board?
Governments choose a hard peg or currency board to anchor inflation expectations and increase credibility. Fixing the domestic currency to a stable foreign currency can lower inflation and boost investor confidence. The main cost is losing independent monetary policy and the need for ample foreign reserves or strict fiscal discipline to sustain the peg.