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.

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Definitions:

Illegally Seized Evidence

Evidence obtained through violations of the Fourth Amendment's protection against unreasonable searches and seizures, which is inadmissible in court under the exclusionary rule.

Arresting Officers

Law enforcement officials responsible for apprehending suspects and placing them under arrest.

Exclusionary Rule

A legal principle in the United States that prevents evidence collected in violation of a defendant's constitutional rights from being used in a court of law.

Illegal Search and Seizure

Investigations or actions by law enforcement without a warrant or probable cause, violating the Fourth Amendment rights.