The currency of the United Arab Emirates is fixed relative to the US dollar: this means that the exchange rate between the United Arab Emirates dirham and other currencies is determined by the dollar exchange rate. This is an example of a exchange rate. a. floating b. pegged c. dirty float d. flexible e. real

b. pegged

Explanation: The United Arab Emirates (UAE) is one of the countries of the world who has adopted a pegging system as the system through which it will manage its foreign exchange market. Most countries adopt the pegging for stability.

For example the United Arab Emirates is an oil rich nation and the country needs the United States of America as a major trading partner,hence it has chosen to peg it's currency to the United States dollars.

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