Proponents of the Fixed Exchange Rate System Argue That

question 55

Multiple Choice

Proponents of the fixed exchange rate system argue that

• A) flexible exchange rates may promote international trade,but under a fixed exchange rate system at least we know what the rates will be from day to day.
• B) under a flexible exchange rate system,there is too great a chance that the exchange rate will diverge from the equilibrium exchange rate.
• C) under a flexible exchange rate system,there is no way of knowing what the exchange rate is at any particular point in time.
• D) under a fixed exchange rate system,there would be only one currency.
• E) none of the above

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Definitions:

Engulfing

The process by which cells absorb particles by enveloping them, typical in immune responses and nutrient intake.

Protection

The act of shielding something from harm or maintaining its safety through various means.

Plasma Protein

A variety of proteins found in plasma, which include albumin, immunoglobulins, and clotting factors, playing roles in transport, immunity, and blood clotting.

Fibrinogen

A soluble plasma glycoprotein that is converted to fibrin in the blood clotting process.