An Advantage of a Flexible Exchange Rate System Relative to a Fixed

question 14

Multiple Choice

An advantage of a flexible exchange rate system relative to a fixed system is that in a flexible rate system

• A)currency speculation will be reduced.
• B)balance of payments surpluses and deficits can be dealt with using fiscal policy,not monetary policy.
• C)inflation will be minimized by the "discipline of the balance of payments."
• D)the price of imported goods will be kept relatively low.
• E)none of the above.

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Definitions:

Sebaceous Cyst Removal

A surgical procedure to remove a cyst filled with sebum from the skin.

Sutures

Threads or staples used by surgeons to close wounds or surgical incisions.

Wound Healing

The process of the body repairing tissue damage through stages that include clotting, inflammation, growth, and remodeling.

Staples

Metal wires bent to form a U shape, used to bind sheets of paper together or to attach materials to surfaces.