Which of the Following Is Not an Advantage of a Fixed

question 31

Multiple Choice

Which of the following is not an advantage of a fixed exchange rate system?

• A)Inflation is somewhat self-correcting.
• B)Central banks can more easily engage in expansionary policy even if other countries do not.
• C)Unemployment is somewhat self-correcting.
• D)Exchange rate risk is reduced.

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Definitions:

Automobile Manufacturer

A company engaged in the designing, production, marketing, and selling of motor vehicles.

Earnings Per Share

A financial ratio indicating the portion of a company's profit allocated to each outstanding share of common stock.

Income Statement

The income statement is a financial statement that shows a company's revenues and expenses over a specific period, demonstrating how the revenues are transformed into net income or loss.

Disclosed

Information that has been made known or revealed, typically referring to facts that were previously private or confidential.