Which of the Following Is Not an Advantage to a Country

question 93

Multiple Choice

Which of the following is not an advantage to a country of choosing to fix its exchange rate against a major currency,rather than choosing a floating exchange rate?

• A)Pegging allows the country more flexibility in conducting monetary policy.
• B)Pegging helps avoid inflation in imported goods caused by currency depreciation for countries with significant levels of imports.
• C)Pegging insures that interest payments stemming from foreign loans do not fluctuate with the value of the currency.
• D)Pegging reduces the uncertainty caused by currency fluctuations and thereby simplifies business planning.

---

Definitions:

Malfunctioning

The failure of a system, device, or component to perform its required operational function.

Pathogens Transmission

The process by which infectious agents, such as bacteria, viruses, and fungi, are spread from one person, animal, or object to another.

Insufficient Hand Hygiene

Inadequate practices in cleaning hands, which can lead to the spread of infections and increased health risks.

Contaminated Blood Products

This term describes blood products, such as plasma or red blood cells, which are tainted with pathogens or unwanted substances, leading to potential risks when transfused.