Which One Is Not a Disadvantage of a Freely Floating

question 69

Multiple Choice

Which one is not a disadvantage of a freely floating exchange rate system?

• A) It can adversely affect a country that has high unemployment.
• B) It can adversely affect a country that has high inflation.
• C) The government may intervene to change the value of a given currency.
• D) The exchange rate risk is high and may be costly to manage.

Understand and apply different methods (scattergraph, high-low, least-squares regression) for estimating costs.

Differentiate among variable, fixed, step-variable, and mixed costs.

Understand how modern technology impacts cost structures in industries.

Analyze cost behavior to make informed financial decisions.

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Definitions:

Distinctiveness

A principle suggesting that an event or object is memorable or noticeable because it differs significantly from other events or objects.

Consistency

The principle of maintaining the same attitudes, beliefs, and behaviors over time, which contributes to the predictability and stability of one's actions.

Neuroticism

A personality trait characterized by a long-term tendency to be in a negative emotional state, including feelings of anxiety, depression, and emotional instability.

Mental Illnesses

Disorders that affect an individual's mood, thinking, and behavior, examples include depression, anxiety disorders, schizophrenia, and bipolar disorder.