Proponents of a Fixed Exchange Rate System Maintain That It

question 79

Multiple Choice

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

• A) the balance of payments adjusts continuously to exchange rate movements.
• B) governments can establish independent monetary and fiscal policies.
• C) disorderly exchange rate movements can disrupt trade and investment patterns.
• D) floating exchange rates operate under simplified institutional arrangements.

---

Definitions:

Desirable Behaviour

Refers to actions or conduct by individuals that are positively reinforced by an organization, typically aligning with its values and contributing to a positive work environment.

Development Strategy

A long-term plan for the growth or progress of a company, country, or individual.

Digital Delivery Method

A system or process that allows for the distribution of products, services, or information via digital channels, such as the internet or mobile apps.

Asynchronous

Communication or processes that do not occur in real-time, allowing participants to engage at their own convenience.