Flexible exchange rates are more volatile than floating ones.

Name: Flexible exchange rates are more volatile than floating ones.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The statement is incorrect. Flexible exchange rates and floating exchange rates refer to the same thing. The more appropriate comparison would be between fixed exchange rates and flexible/floating exchange rates, in which case it is true that fixed exchange rates tend to be less volatile than flexible/floating ones.

Flexible Exchange Rates Are More Volatile Than Floating Ones