One of the Disadvantages of a Fixed Exchange Rate System

question 92

Multiple Choice

One of the disadvantages of a fixed exchange rate system is:

• A)​too much stability in exchange rates.
• B)​import and export industries forego the benefits of highly variable exchange rates.
• C)​that to maintain fixed exchange rates, nations must give up control of their monetary policies.
• D)​None of the above are disadvantages of a fixed exchange rate system.

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Definitions:

1,3-Butadiene

A simple conjugated diene with the formula C4H6, important as a monomer in producing synthetic rubber.

AntiAromatic

Compounds that possess cyclic, conjugated systems with 4n π electrons, which destabilize the molecule and make it less stable than expected.

NonAromatic

A compound that does not fulfill the criteria for aromaticity, lacking a continuous ring of p-orbitals.

[10]Annulene

A cyclic compound with a ten carbon ring structure, which may or may not exhibit aromatic characteristics depending on its substitution pattern and ring geometry.