Flexible Exchange Rates

question 142

Multiple Choice

Flexible exchange rates:

• A)give governments a greater degree of flexibility in monetary policy than fixed exchange rates do.
• B)make it simpler to engage in international trade than fixed exchange rates do.
• C)produce smaller exchange rate fluctuations than fixed exchange rates do.
• D)impose a greater degree of discipline on the behavior of central banks than fixed exchange rates do.

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Definitions:

Ravenna

A city in Italy, famous for its well-preserved late Roman and Byzantine architecture and mosaics.

Katholikon

The main church in a Greek Orthodox monastery.

Hosios Loukas

A historic monastery in Greece, renowned for its Byzantine architecture, mosaics, and significance in the Orthodox Christian tradition.

Pendentives

Architectural elements that allow the placement of a circular dome over a square room or an elliptical dome over a rectangular room by transitioning the shape through triangular sections.