Two Reasons for an Industrialized Country to Adopt an Exchange-Rate

question 68

Multiple Choice

Two reasons for an industrialized country to adopt an exchange-rate targeting regime are if the country ________ conduct successful monetary policy on its own,and if the country wants to ________ integration of the domestic economy with its neighbors.

• A)cannot;encourage
• B)cannot;discourage
• C)can;encourage
• D)can;discourage

---

Definitions:

Common Shares

A type of equity security that represents ownership in a corporation, entitling holders to vote at shareholders' meetings and to dividends.

Net Increase

refers to the change in a financial statement item that results in a higher amount compared to a previous period.

Cash Dividends

Payments made by a company out of its profits to its shareholders, typically in cash.