One of the Disadvantages of a Fixed Exchange Rate System

question 92

Multiple Choice

One of the disadvantages of a fixed exchange rate system is:

• A)​too much stability in exchange rates.
• B)​import and export industries forego the benefits of highly variable exchange rates.
• C)​that to maintain fixed exchange rates, nations must give up control of their monetary policies.
• D)​None of the above are disadvantages of a fixed exchange rate system.

---

Definitions:

Hostility

The display of aggression, opposition, or antagonism towards others, which can be verbal, emotional, or physical.

Anxiety

A mental health disorder characterized by feelings of worry, anxiety, or fear that are strong enough to interfere with one's daily activities.

Hostile

Characterized by antagonism or opposition, often resulting in unfriendly or aggressive behavior.

Uncooperative

Characteristic of an individual or entity that is not willing to work with others or follow instructions.