Which of the Following Arguments Is in Favor of Floating

question 29

Multiple Choice

Which of the following arguments is in favor of floating exchange rates?

• A) A country's ability to expand or contract its money supply should be limited by the need to maintain exchange rate parity.
• B) Maintaining balance of trade equilibrium is not in the best interest of a country.
• C) Countries can isolate themselves from uncertainties when they trade using a mutually agreed on exchange rate.
• D) Governments can restore monetary control by removing the obligation to maintain exchange rate parity.

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Definitions:

Locomotion

The ability of an organism to move from one place to another using various mechanisms such as walking, swimming, or flying.

Involuntary Control

The automatic regulation of bodily functions and processes that do not require conscious control, such as breathing and digestion.

Contractility

Refers to the ability of muscle tissue to contract or shorten, generating force.

Muscle Cell

Specialized cells that make up muscle tissue, capable of contracting and generating force, essential for movement and posture.