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:

Normal Accidents

A theory that suggests complex systems are vulnerable to failures and disasters due to their inherent complexity and tight coupling.

Island Nations

Countries consisting primarily of one or more islands, often facing unique economic, environmental, and geopolitical challenges.

Fossil Fuel Industries

Sectors of the economy that extract, process, and sell coal, oil, and natural gas, which are non-renewable sources of energy.

Global Warming

Is the gradual worldwide increase in average surface temperature.