A Criticism of the Floating Rate System Is That the Unpredictability

question 23

Multiple Choice

A criticism of the floating rate system is that the unpredictability of exchange rate movements has made business planning difficult.Advocates of a floating system reply that:

• A)the forward exchange market insures against the risks associated with exchange rate fluctuations.
• B)companies should invest more in efforts to forecast exchange rate movements.
• C)this difficulty is faced by every organization operating in a dynamic business environment.
• D)this uncertainty actually aids the growth of international trade and investment and provides new investment opportunities.

---

Definitions:

Gender Role

A set of expected behaviors, attitudes, and traits for males or for females.

Expected Behaviors

Actions or reactions that are anticipated in a social or cultural setting based on norms or standards.

Traits

Characteristics or qualities defining individuals' personalities, thought to be relatively stable over time and influencing behavior.

Gender Roles

Social and cultural norms dictating what behaviors, activities, and roles are considered appropriate for men and women.