According to Our Textbook,those in Favour of Floating Exchange Rates

question 6

Multiple Choice

According to our textbook,those in favour of floating exchange rates argue that floating rates __________.

• A) discourage speculation
• B) help confuse trade imbalances
• C) decrease uncertainty
• D) have no effect on trade imbalances
• E) help adjust trade imbalances

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Definitions:

Foramen Ovale

In the fetal heart, the oval opening in the septum secundum; the persistent part of septum primum acts as a valve for this interatrial communication during fetal life; postnatally, the septum primum becomes fused to the septum secundum to close the foramen ovale, forming the fossa ovale.

Septum Primum

First septum in the embryonic heart that arises on the wall of the originally single atrium of the heart and separates it into right and left chambers.

Interatrial Septum

The wall of tissue that separates the right and left atria of the heart.

Septum Secundum

Second of two major septal structures involved in the partitioning of the atrium, arising later than the septum primum and located to the right of it; it remains an incomplete partition until after birth, with its unclosed area constituting the foramen ovale.