If a Country Has a Fixed Exchange Rate, It

question 32

Multiple Choice

If a country has a fixed exchange rate, it:

• A) has a value that is set by the government.
• B) allows for more predictability and stability.
• C) helps attract foreign investment and gives businesses that depend on overseas trade more confidence to invest.
• D) All of these statements are true.

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Definitions:

Earthquakes

Natural phenomena caused by a sudden release of energy in the Earth's crust, leading to ground shaking and, in some cases, causing great destruction.

Volcanoes

Openings in the Earth's crust from which lava, ash, and gases erupt.

High Mountains

Elevated landforms reaching great heights above the surrounding terrain, often formed by tectonic processes like collision and rifting.

Transform Boundary

A plate boundary in which two tectonic plates move horizontally past one another.