Which of the Following Is a Disadvantage of a Fixed

question 10

Multiple Choice

Which of the following is a disadvantage of a fixed exchange rate system?

• A) Importers are insulated from the risk that the currency will appreciate over time.
• B) Management of an MNC is less difficult.
• C) The government might change the value of the currency.
• D) Exporters are insulated from the risk that the currency will depreciate over time.

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Definitions:

Industrialists

Business leaders and entrepreneurs who own or manage industrial enterprises, playing a key role in the development and growth of the industrial sector.

Middle-class Black Organizations

Associations and clubs established by middle-class African Americans to promote community welfare, civil rights, and cultural pride.

Interracial Dance

Refers to dance events or practices that involve participants from different racial or ethnic backgrounds, often as a form of social integration or cultural exchange.

Bojangles Robinson

A famous African American tap dancer and actor known for his contributions to the performing arts during the early 20th century.