One Advantage of a Fixed Exchange Rate System Compared to a Floating

question 41

Multiple Choice

One advantage of a fixed exchange rate system compared to a floating or managed float exchange rate system is

• A) business planning becomes much easier.
• B) there is no need for government intervention.
• C) it allows the exchange rate to reflect demand and supply in the market.
• D) it eliminates the possibility of depreciation during a recession.

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Definitions:

Bias

Bias refers to a predisposition or prejudice towards or against something or someone, often in a way considered to be unfair or irrational.

Stereotype Assimilation

The phenomenon where individuals or groups adopt behaviors and attitudes based on generalized and oversimplified perceptions of their identity.

Stereotype Reactance

The defiance or oppositional behavior that individuals might display when they feel stereotyped or categorized in a limiting way.

Leadership Performance

The effectiveness with which a leader influences their group or organization towards achieving defined objectives and goals.