Those in Favor of Floating Exchange Rate Claim That ____

question 25

Multiple Choice

Those in favor of floating exchange rate claim that ____.

• A) uncertainty in monetary markets dampens the growth of international trade
• B) inflation is beneficial to a country if it is controlled closely
• C) trade imbalances can be adjusted by using floating exchange rates
• D) governments can have rigid control over monetary markets by using floating rates

---

Definitions:

Rights Offering

A financial opportunity offered to existing shareholders to purchase additional shares at a discounted price before the new shares are offered to the public.

Rights Offering

An opportunity given to existing shareholders to purchase additional shares of the company's stock, often at a discount, before it is offered to the public.

Subscription Price

The cost at which existing shareholders can purchase additional shares before they are offered to the public, typically during a rights offering.

Stock Price

The cost of purchasing a share of a company in the stock market, which fluctuates based on supply and demand dynamics.