Research in the Performance of Developing Nations with Exchange Rate

question 70

Multiple Choice

Research in the performance of developing nations with exchange rate pegs has shown that:

• A) fixed exchange rates are 100% effective in curbing inflation and preventing hyperinflation.
• B) fixed exchange rates are 100% ineffective in curbing inflation and preventing hyperinflation.
• C) floating exchange rates are more effective in curbing inflation and preventing hyperinflation.
• D) fixed exchange rates are neither necessary nor sufficient to curb inflation and prevent hyperinflation.

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Definitions:

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Management Discussion

A section in a company's annual report or financial statements where management provides a narrative explanation of the company's financial condition, results of operations, and future outlook.

Auditor's Report

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Unusual Item

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