The Strongest Argument in Favor of Fixed Exchange-Rates Is

question 34

Multiple Choice

The strongest argument in favor of fixed exchange-rates is:

• A)the country's ability to use independent monetary policy to pursue internal balance.
• B)that floating exchange rates are often very volatile, disrupting international trade.
• C)the ease of defending fixed exchange rates during speculative attacks.
• D)that a fixed exchange rate allows unrestricted flow of financial capital from and into a country.

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Definitions:

Level Of Needs

A concept reflecting the prioritization of necessities, usually related to Maslow's hierarchy of needs in psychology.

Physiological

Refers to the functions and activities of living organisms and their parts, including all physical and chemical processes.

Safety

The condition of being protected from or unlikely to cause danger, risk, or injury.