Even in a World with Floating Exchange Rates, States Have

question 22

Multiple Choice

Even in a world with floating exchange rates, states have some ability to control the value of their currency. What is an advantage of having a weak currency?

• A)Exporting industries benefit from a weak currency as their goods are cheaper for foreigners to purchase.
• B)Traveling citizens benefit from a weak currency as they can purchase more goods abroad.
• C)Consumers benefit from a weak currency as they can afford to buy more imports.
• D)There are no advantages to a weak currency.

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Definitions:

Competitive Advantage

A unique attribute or ability that enables an organization to outperform its competitors.

Insurance Tax

A tax levied on insurance premiums that insurers are required to pay, often varying by state or country.

Chemical Spill

The release of a hazardous substance, either liquid or powdered, into the environment, potentially causing harm to people, property, or the natural surrounding.

Permanent Disability

A long-term impairment that significantly restricts an individual's ability to engage in work or other daily activities.