All of the Following Are Advantages of Currency Pegging EXCEPT

question 77

Multiple Choice

All of the following are advantages of currency pegging EXCEPT

• A) it reduces exchange rate risk.
• B) it is a check against inflation.
• C) it provides protection for firms that have taken out loans in foreign currencies.
• D) it keeps the exchange rate closer to its equilibrium rate.

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Definitions:

Lymphatic Ducts

Large vessels of the lymphatic system that drain lymph from various parts of the body back into the bloodstream.

Laryngopharynx

The lower part of the pharynx just below the oropharynx and nasopharynx and above the esophagus and larynx, involved in both respiration and digestion.

Oropharynx

A part of the pharynx located between the soft palate and the upper edge of the epiglottis, involved in swallowing and speech.

Nasopharynx

The upper part of the throat located behind the nose, connecting the nasal cavity to the mouth and larynx.