Which One Is Not a Disadvantage of a Freely Floating

question 3

Multiple Choice

Which one is not a disadvantage of a freely floating exchange rate system?

• A)It can adversely affect a country that has high unemployment.
• B)It can adversely affect a country that has high inflation.
• C)The government may intervene to change the value of a given currency.
• D)The exchange rate risk is high and may be costly to manage.

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