The Advantage of a Fixed Exchange Rate Is That It

question 78

Multiple Choice

The advantage of a fixed exchange rate is that it:

• A) leaves monetary policy available for macroeconomic stabilization.
• B) eliminates the possibility of the twin deficits.
• C) eliminates uncertainty about the value of a currency.
• D) tends to create trade surpluses.

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Definitions:

Journal Bearings

Bearings that support a rotating shaft, where the shaft rotates within a lubricated sleeve or shell without rolling elements.

Tensile Strength

The maximum amount of tensile stress that a material can withstand before failure, an essential parameter in material selection and engineering design.

Hardness

A measure of a material's resistance to deformation, often assessed by indentation.

Chromium

A chemical element with symbol Cr, known for its hardness, high corrosion resistance, and ability to be polished to a high shine, often used in plating.