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.

---

Definitions:

Moral Treatment

A nineteenth-century approach to treating people with mental dysfunction that emphasized moral guidance and humane and respectful treatment.

Schizophrenia

A chronic and severe mental disorder characterized by distortions in thinking, perception, emotions, language, sense of self, and behavior.

State Mental Hospitals

Publicly funded psychiatric hospitals primarily responsible for treating individuals with severe mental health disorders, often when less restrictive settings are inadequate.

Mid-Twentieth Century

Pertains to the period around the middle of the 20th century, typically considered to span from the 1930s to the 1960s.