Proponents of a Freely Floating Exchange Rate System Maintain That

question 156

Multiple Choice

Proponents of a freely floating exchange rate system maintain that it is superior to a fixed exchange rate system because it

• A) keeps inflation under control.
• B) provides a simple and clear exchange rate target.
• C) provides continuous adjustment in the balance of payments.
• D) helps prevent disorderly exchange rate movements that can disrupt trade.

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Definitions:

Problem-Solving Approach

A strategy or method employed to identify, analyze, and resolve issues or challenges in a systematic manner.

Employee Evaluation

The systematic assessment of an individual's job performance and productivity.

Defensive Feelings

Emotional reactions that protect one's self-esteem or sense of competence, often triggered by perceived criticism or threat.

Performance Appraisals

The process through which an employee's performance is assessed and feedback is provided by their supervisor or manager.