Type the correct answer in the box. Spell all words correctly. What type of exchange rate system must Diana select?

Diana is the leader of a small country that has recently joined the international monetary system. Foreign trade plays an important role in this country’s economy. Diana wants to stabilize trade dealings and boost the confidence of exporters and importers. Further, she wants to win the confidence of foreign investors by offering a stable investment climate.

Diana must therefore opt for the
exchange rate system.