A Major Problem with Countries Setting Fixed Exchange Rates for Their

question 35

Multiple Choice

A major problem with countries setting fixed exchange rates for their currencies is

• A)Some participating countries are likely to experience continuing balance-of-payments deficits.
• B)The foreign exchange reserves of participating countries will always be depleted.
• C)Import and export prices will probably become more unstable.
• D)The fixed rate will have to be maintained by currency market intervention.

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Definitions:

Contact Comfort

The emotional and physical reassurance gained through touch, especially significant in bonding processes between parents and infants.

Home-Reared Children

Children who are educated and raised in a family home environment, as opposed to an institutional setting like a daycare or school.

Day Care

A service that provides care for children during the day, especially for those whose parents are at work or otherwise engaged.

Developmental Levels

Stages or phases in the growth or advancement of an individual or system, often used in reference to psychological or physical maturity.