Which of the Following Is a Disadvantage of Using a Rigid

question 86

Multiple Choice

Which of the following is a disadvantage of using a rigid policy of fixed exchange rates?

• A) It is likely to create high unemployment in some cases.
• B) It will lead to inflationary economies across the world.
• C) It is likely to bring about trade wars between nations.
• D) It will instigate competitive devaluations and intense competition.

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Definitions:

Asset And Liability Account Balances

The respective values of a company's current and non-current assets, and its current and long-term liabilities at a point in time.

Local Currency

Refers to the legal tender or official currency that is used within a country's borders.

Ending Inventory

The total value of goods available for sale at the end of an accounting period.