Which of the Following Is an Advantage of Fixing Exchange

question 254

Multiple Choice

Which of the following is an advantage of fixing exchange rates?

• A) limiting foreign exchange risk
• B) making residents more mobile across countries
• C) eliminating trade deficits
• D) making the prices of foreign goods more flexible in the domestic market

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Definitions:

Demand Visibility

The ability of a company to forecast and respond to customer demand in a timely and accurate manner.

Buyback

A commercial agreement where a seller agrees to purchase previously sold products back from the buyer, often used in supply chain contracts to manage excess inventory or product returns.

Returns Contract

An agreement that delineates the policy and process for returning goods, including conditions and timeframes.

Supplier Price

The cost at which businesses purchase goods or services from vendors.