One argument favouring a floating-exchange-rate system is that it:
A)makes international trade less difficult.
B)minimizes destabilizing speculation by international investors.
C)allows monetary policy to be used for other purposes.
D)helps prevent excessive growth in the money supply.

Question

Quizplus · Accepted Answer

A floating-exchange-rate system allows a country to use its monetary policy for domestic objectives, such as controlling inflation or stimulating growth, without having to maintain a fixed exchange rate.

One Argument Favouring a Floating-Exchange-Rate System Is That It