The Advantage of a System of Fixed Exchange Rates Over

question 5

Multiple Choice

The advantage of a system of fixed exchange rates over one where exchange rates are flexible is that

• A)the government gains more control over the economy.
• B)floating exchange rates impose risks on importers and exporters from unpredictable exchange rates.
• C)exchange controls become unnecessary.
• D)fiscal and monetary policy can focus more on domestic conditions.

---

Definitions:

Dissent

The expression or holding of opinions at variance with those previously, commonly, or officially held.

Confederacy

A coalition of 11 southern states that seceded from the United States from 1860-1865, leading to the Civil War over issues including states' rights and slavery.

Abraham Lincoln

16th President of the United States, led the country during the Civil War and emancipated the slaves.

Jefferson Davis

The President of the Confederate States of America during the American Civil War.