An Advantage to Exchange-Rate Targeting Is It Helps Keep Inflation

question 23

Multiple Choice

An advantage to exchange-rate targeting is it helps keep inflation under control by tying the inflation rate for ________ traded goods to what is found in the ________ country.

• A)domestically;anchor
• B)domestically;domestic
• C)internationally;anchor
• D)internationally;domestic

---

Definitions:

Section 10(b)

A provision of the Securities Exchange Act of 1934, dealing with securities fraud and providing for the Securities and Exchange Commission to enact rules to prevent such practices.

Rule 10b-5

A regulation under the U.S. Securities Exchange Act of 1934 that addresses fraud and misrepresentation in securities trading, prohibiting deceptive practices.

Securities Exchange Act Of 1934

U.S. legislation governing the secondary trading of securities (stocks, bonds, and debentures) in the financial market, aimed at regulating the exchanges and preventing fraud.

Private Transactions

Private transactions are trades or deals conducted directly between two parties without the involvement of a public exchange or the public eye.