A Major Drawback of a Floating Exchange Rate Is The

question 262

Multiple Choice

A major drawback of a floating exchange rate is the:

• A) opportunity cost associated with the accumulation of foreign exchange reserves.
• B) uncertainty about the value of goods traded internationally.
• C) increased discipline on monetary policy.
• D) distorted incentives for the normal flow of imports and exports.

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Definitions:

Live Births

The birth of a baby that shows any sign of life, such as breathing, heartbeat, or voluntary muscle movements, after separation from the mother's body.

Cartilage

A flexible connective tissue found in various forms in the human and animal body, notably in the joints, rib cage, ear, and nose.

Voice Box

is another term for the larynx, an organ in the top of the neck involved in breathing, producing sound, and protecting the trachea against food aspiration.

The Wrist

A joint complex consisting of the distal end of the radius and ulna and the proximal row of carpal bones, facilitating hand movement.