Which One of the Following Is a Disadvantage of a Fixed

question 36

Multiple Choice

Which one of the following is a disadvantage of a fixed exchange rate system:

• A) Importers are insulated from the risk that the currency will appreciate over time.
• B) Management of an MNC is less difficult.
• C) The government might change the value of the currency.
• D) Exporters are insulated from the risk that the currency will depreciate over time.

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Definitions:

Oocytes

Female gametes or eggs that are produced and developed in the ovaries and can be fertilized by sperm cells to form an embryo.

Ova

The female reproductive cells or eggs.

Mons Pubis

The fatty mound located over the pubic bone of adult humans, more pronounced in females, that becomes covered in pubic hair during puberty.

Nerve Endings

Specialized structures at the end of nerve fibers that transmit signals to and from different parts of the body, crucial for sensing stimuli.