A Potential Limitation of Freely Floating Exchange Rates Is That

question 97

Multiple Choice

A potential limitation of freely floating exchange rates is that:

• A) Countries require a larger amount of international reserves than otherwise
• B) Countries are unable to initiate economic policies to combat unemployment
• C) Exchange rates may experience wide and frequent fluctuations
• D) Demand tends to be highly sensitive to price movements

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Definitions:

Aerobic Fitness

The ability of the heart, lungs, and circulatory system to supply oxygen efficiently during sustained physical activity.

Heart Attack

A medical emergency where the blood flow to the heart is suddenly blocked, resulting in damage to the heart muscle.

Cardiorespiratory Fitness

A health-related component of physical fitness that relates to the ability of the circulatory and respiratory systems to supply oxygen during sustained physical activity.

Anaerobic Exercise

High-intensity physical activity that does not rely on oxygen as the primary energy source and focuses on strengthening muscles.