Exchange-rate stability is likely to be a more important goal for the central banks of:

Question

Quizplus · Accepted Answer

Emerging market economies often prioritize exchange-rate stability to attract foreign investment, reduce the cost of imports, and stabilize their economies. In contrast, larger economies like the U.S. may focus more on other goals such as controlling inflation or unemployment, as they can rely on the size and depth of their markets to absorb exchange rate fluctuations.

Exchange-Rate Stability Is Likely to Be a More Important Goal