Which of the Following Is a Position Taken by Advocates

question 78

Multiple Choice

Which of the following is a position taken by advocates of a fixed exchange rate system?

• A)Removal of the obligation to maintain exchange rate parity would restore monetary control to a government.
• B)Destabilizing speculation tends to accentuate the fluctuations around the exchange rate's long-run value.
• C)Speculation has negligible impact on foreign exchange rates.
• D)The forward exchange market insures against the risks associated with exchange rate fluctuations.

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Definitions:

Membrane Excitability

Membrane excitability refers to the ability of nerve and muscle cells to produce a rapid change in their membrane potential, crucial for the generation and propagation of electrical signals.

Electric Charges

Electric charges are the physical properties of particles that cause them to attract or repel each other, based on the principle that like charges repel and opposite charges attract.

Nerves

Bundles of fibers that transmit electrical impulses between the brain, spinal cord, and other parts of the body, facilitating communication and responses.

Electromyography (EMG)

The insertion of needles into selected skeletal muscles for the purpose of recording nerve conduction time in relation to muscle contraction.