Which of the Following Is Not an Advantage to a Country

question 93

Multiple Choice

Which of the following is not an advantage to a country of choosing to fix its exchange rate against a major currency,rather than choosing a floating exchange rate?

• A)Pegging allows the country more flexibility in conducting monetary policy.
• B)Pegging helps avoid inflation in imported goods caused by currency depreciation for countries with significant levels of imports.
• C)Pegging insures that interest payments stemming from foreign loans do not fluctuate with the value of the currency.
• D)Pegging reduces the uncertainty caused by currency fluctuations and thereby simplifies business planning.

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Definitions:

Previous Elections

Electoral events that have taken place in the past, serving as historical points of reference for political analysis.

Voter Analysis

The study of voter behavior and demographics to understand their preferences and influences.

Population Profiles

Comprehensive descriptions of the demographic characteristics of a specific population, including factors such as age, sex, employment, and health status.

Election Day

The specific day set by law for the general elections of public officials to take place.