An Advantage to Floating Exchange Rates Is That They Help

question 400

Multiple Choice

An advantage to floating exchange rates is that they help:

• A) insulate countries from currency fluctuations.
• B) insulate countries from recessions starting in other countries.
• C) keep exports from replacing domestic jobs.
• D) keep export prices down.

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Definitions:

Financial Distress

A situation where a company is struggling to meet its financial obligations and is at risk of bankruptcy.

Receivables

Receivables are amounts owed to a business by its customers for goods or services delivered on credit, considered a current asset on the balance sheet.

Day-to-Day Operations

The routine activities that are necessary for a business or organization to function efficiently on a daily basis.