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Supporters of Fixed Exchange Rates Maintain That Such a Rate

question 132

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Supporters of fixed exchange rates maintain that such a rate removes uncertainty about the future exchange rate,creating a better business environment for exporters and importers.However,a speculative attack on a currency with a fixed exchange rate may lead to __________ of the currency.


Definitions:

Passive Voice

A grammatical construction where the subject of a sentence is the recipient of an action rather than the performer.

Credibility

The quality of being trusted and believed in, often based on a reputation for honesty and reliability.

Potential Customers

Individuals or entities that are considered likely candidates to purchase a company's products or services but have not yet done so.

Business Communications

The exchange of data among individuals both inside and outside a company in a formal environment.

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