Which of the Following Is an Argument in Favour of Fixed

question 5

Multiple Choice

Which of the following is an argument in favour of fixed exchange rates?

• A)They add a degree of certainty to international trade.
• B)They prevent instability in the export and import industries.
• C)They discourage currency speculation.
• D)They appeal to people who tend to equate the exchange rate with national prestige.
• E)They enhance the effectiveness of monetary policy.

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