Which of the Following Is NOT an Advantage to Exchange-Rate

question 11

Multiple Choice

Which of the following is NOT an advantage to exchange-rate targeting?

• A)It provides a strong nominal anchor to keep inflation under control.
• B)It provides an automatic rule for policy to help avoid the time-inconsistency problem.
• C)It is simple and clear so that the public can easily understand it.
• D)It increases the accountability of policymakers.

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Definitions:

Arithmetic Operations

Fundamental arithmetic operations such as adding, subtracting, multiplying, and dividing.

Arithmetic Operations

Fundamental arithmetic functions such as add, subtract, multiply, and divide.

Four-Figure Accuracy

Refers to numerical accuracy up to four digits, often used in scientific and mathematical contexts to maintain precision.

Repeating Decimal

A decimal fraction in which a figure or group of figures is repeated indefinitely.