Advocates of Floating Rates Pointed Out That

question 29

Multiple Choice

Advocates of floating rates pointed out that

• A) removal of the obligation to peg currency values would restore monetary control to central banks.
• B) imposing of the obligation to peg currency values would restore monetary control to central banks.
• C) removing of the obligation to peg currency values would restore fiscal control.
• D) imposing of the obligation to peg currency values would restore fiscal control.
• E) imposing of the obligation to peg currency would restore monetary control to the consumer.

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Definitions:

Total Float

The maximum duration a project task can be postponed without impacting the overall project finish date.

Precautionary Motive

The desire to hold cash or liquid assets to safeguard against future uncertainties and unplanned expenses.

Speculative Motive

The intention to hold cash for the purpose of taking advantage of future opportunities that may arise, such as bargain purchases or earning profits from price changes.

Investment Opportunities

Investment opportunities refer to avenues where individuals or entities can invest their resources with the expectation of generating a future financial return.