Which of the Following Is Not an Advantage to Exchange-Rate

question 119

Multiple Choice

Which of the following is not an advantage to exchange-rate targeting?

• A) It provides a strong nominal anchor to keep inflation under control.
• B) It provides an automatic rule for policy to help avoid the time-inconsistency problem.
• C) It is simple and clear so that the public can easily understand it.
• D) It increases the accountability of policymakers.

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Definitions:

Resistance

The opposition to current flow in an AC or DC circuit.

Derate

To reduce the rated capability of electronic components or electrical devices due to environmental conditions or other factors.

Ambient Temperature

The temperature of the surrounding environment where a device operates or a process occurs.

Raceway

An enclosed conduit that forms a physical pathway for electrical wiring to be protected and routed through a building or structure.