Apegged exchange rate means that the value of a currency is
a. fixed against other currencies based on an agreement
b. fixed relative to a reference currency
c. independent of the valuations of other currencies
d. not determined by free market forces

Currency exchange rates are something that is always fluctuating. That being said, a pegged exchange rate is exactly what it sounds like. Pegged meaning something is stuck to something else. In this case, a pegged exchange rate is an exchange rate that is fixed against the value of another currency. This other currency is something that is both predictable, and known in value. This is often called a reference currency. An easy example of this reference currency is something such as gold, where the value is relatively known, and stable. The answer is response B.