Which of the Following Is Not a Potential Disadvantage of Freely

question 90

Multiple Choice

Which of the following is not a potential disadvantage of freely floating exchange rates?

• A) They require larger amounts of international reserves than other exchange systems.
• B) Demand for imports and exports may be influenced by price speculation.
• C) There may occur large amounts of destabilizing speculation.
• D) Capital movements among nations may be hindered via exchange rate fluctuations.

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Definitions:

Parallel-Distributed Processing

A model of information processing in which data is processed simultaneously by multiple pathways or networks, resembling the processing that occurs in the human brain.

Personally Relevant

Pertaining to or having a direct significance or importance to an individual's own life or interests.

Retrieval

The act of making stored memory information conscious and accessible.

Encoding

The process of transforming information into a form that can be stored in memory.