Which of the Following Is a Characteristic of the Floating

question 54

Multiple Choice

Which of the following is a characteristic of the floating exchange rate regime?

• A)It allows for automatic trade balance adjustments.
• B)The use of monetary policy by the government is restricted.
• C)It allows for greater monetary discipline.
• D)It limits the destabilizing effects of exchange rate speculation.
• E)It eliminates volatility and uncertainty associated with exchange rates.

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Definitions:

Flynn Effect

The observed rise over time in standardized intelligence test scores, theorized to be caused by various factors like improved nutrition, education, and test-taking strategies among populations.

Intelligence Tests

Standardized assessments designed to measure human intelligence and cognitive abilities.

IQ

An abbreviation for Intelligence Quotient, a theoretical measure of an individual's cognitive abilities in relation to their age group.

Multiple Intelligences

A theory proposed by Howard Gardner, suggesting that people have different kinds of intelligences, such as linguistic, logical-mathematical, and spatial.