Which of the Following Is Not a Disadvantage of Exchange-Rate

question 129

Multiple Choice

Which of the following is not a disadvantage of exchange-rate targeting?

• A) It relies on a stable money-inflation relationship.
• B) The targeting country gives up an independent monetary policy.
• C) The targeting country is left open for a speculative attack.
• D) It can weaken the accountability of policymakers.

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Definitions:

Fear Center

A colloquial term often used to refer to the amygdala, a part of the brain involved in processing emotions, including fear.

Amygdala

A section of the brain that is responsible for detecting fear and preparing for emergency events.

Hypothalamus

A region of the brain below the thalamus that coordinates both the autonomic nervous system and the activity of the pituitary, controlling body temperature, thirst, hunger, and other homeostatic systems.

Cerebellum

A major feature of the hindbrain of all vertebrates responsible for motor control, and possibly also some cognitive functions.