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:

Stock Dividend

A dividend payment made by a company to its shareholders in the form of additional shares, rather than cash.

Reacquired

Refers to assets or shares that a company buys back from investors or shareholders.

Common Stock

A type of equity security that represents ownership in a corporation, with holders typically having voting rights.

Earnings Per Share

A measure of a company's profitability calculated by dividing its net income by the total number of outstanding shares.