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:

Partnership Business

A form of business operation where two or more individuals share ownership, profits, and liabilities.

Audit Services

Professional services that review and verify the accuracy of financial records and statements of a corporation or organization to ensure truthfulness and compliance with accounting standards.

Partnership Debt

Financial obligations incurred by a partnership, for which each partner may be equally responsible.

Partnership Agreement

A contract between partners in a business venture that outlines the terms of the partnership, including each partner’s rights, responsibilities, and share of profits.