All of the Following Are Major Drawbacks of a Fixed

question 58

Multiple Choice

All of the following are major drawbacks of a fixed exchange rate EXCEPT that:

• A)exchange controls must be imposed at the cost of administrative red tape and corruption.
• B)resources must be diverted to the accumulation of large foreign exchange reserves.
• C)monetary policy cannot be used to stabilize output and the inflation rate.
• D)commerce among countries is more uncertain and riskier.

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Definitions:

Ray-finned Fish

A diverse group of fish characterized by their fins being supported by bony spines or rays, which is distinct from the fleshy fins of lobe-finned fish.

Vertebral Column

Backbone.

Tailless

Lacking a tail, characteristic of certain animals either through evolutionary adaptation or a specific genetic condition.

Nonhuman Primates

Primates other than humans, including monkeys, apes, and prosimians, characterized by their complex behaviors and varied habitats.