A Potential Disadvantage of Freely Floating Exchange Rates Is That

question 38

Multiple Choice

A potential disadvantage of freely floating exchange rates is that there would

• A) exist excessive amounts of hedging in the foreign exchange markets.
• B) be a lack of incentive to initiate exchange arbitrage.
• C) be excessive amounts of destabilizing speculation.
• D) exist a devaluation bias in the exchange markets.

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Definitions:

Task-Analysis Inventory

A systematic collection and examination of data related to the tasks performed in a specific job, aiming to understand the skills and actions required.

Training Needs

The gap between current capabilities of employees and the skills required to perform their job effectively, guiding the development of training programs.

Detailed

Describes information or work that is done with thoroughness and precision.

Job Families

Groups of occupations within an organization based upon work performed, skills, education, training, and credentials.