The Authors Discuss the Concept of the "Impossible Trinity" or the Inability

question 12

Multiple Choice

The authors discuss the concept of the "Impossible Trinity" or the inability to achieve simultaneously the goals of exchange rate stability, full financial integration, and monetary independence. If a country chooses to have a pure float exchange rate regime, which two of the three goals is a country most able to achieve?

• A) monetary independence and exchange rate stability
• B) exchange rate stability and full financial integration
• C) full financial integration and monetary independence
• D) A country cannot attain any of the exchange rate goals with a pure float exchange rate regime.

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Definitions:

Frontal Lobe

The part of the brain located at the front of the skull, responsible for voluntary movement, expressive language, and managing higher level executive functions.

Conscientiousness

A personality trait characterized by organization, dependability, and a strong sense of duty.

Positive-emotion Words

Words that are used to express or evoke feelings of joy, happiness, love, and other positive emotions.

Extraversion

A personality trait characterized by sociability, talkativeness, assertiveness, and high levels of emotional expressiveness.