Solved

What Are Some of the Ways That Fixed Exchange Rates Can

Question 6

Multiple Choice

What are some of the ways that fixed exchange rates can be advantageous in an economy?


A) Fixed exchange rates make foreign investment easier, solve the problem of "stickiness" in the price of goods and services, and make a financial crisis less likely.
B) Fixed exchange rates are the most accurate reflection of market realities, make foreign trade easier, and can help end a financial crisis.
C) Fixed exchange rates can make foreign trade easier, help end a financial crisis, or help establish a new central bank's credibility.
D) Fixed exchange rates reduce uncertainty for businesses, make a financial crisis less likely, and can help end a financial crisis if one occurs.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents