One Advantage of Adopting a Fixed Exchange Rate Is That

question 145

Multiple Choice

One advantage of adopting a fixed exchange rate is that:

• A)it makes business planning easier.
• B)interest cost fluctuations on foreign loans can be avoided.
• C)inflation can be avoided.
• D)the country can avoid current account surpluses.

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Definitions:

Binomial Experiment

An experiment or trial that leads to two possible outcomes, often termed success and failure, and follows a binomial distribution.

Identical Trials

Trials in a probability experiment that share the same conditions and possible outcomes.

Success

Achieving a desired outcome or reaching a predefined criterion of performance.