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:

Somnambulism

Somnambulism, commonly known as sleepwalking, involves engaging in activities that are normally performed while fully conscious, such as walking or moving around, during a deep state of sleep.

Narcolepsy

A chronic sleep disorder characterized by overwhelming daytime drowsiness and sudden attacks of sleep.

Insomnia

A common sleep disorder that involves difficulty falling asleep, staying asleep, or obtaining restorative sleep.

REM Sleep

is a phase of sleep characterized by rapid eye movement, low muscle tone, and vivid dreaming, considered crucial for memory consolidation and emotional regulation.