Which one is not a disadvantage of a freely floating exchange rate system?
A) It can adversely affect a country that has high unemployment.
B) It can adversely affect a country that has high inflation.
C) The government may intervene to change the value of a given currency.
D) The exchange rate risk is high and may be costly to manage.
Correct Answer:
Verified
Q8: The Bretton Woods Agreement called for the
Q36: An advantage of freely floating exchange rates
Q41: Normally, when a pegged exchange rate is
Q60: The Smithsonian Agreement called for a devaluation
Q65: A "dirty" float represents a system of:
A)freely
Q67: A country with fixed exchange rates oFten
Q68: Which of the following did not occur
Q73: If a U.S. firm plans to frequently
Q74: Dollarization refers to the replacement of local
Q75: Assume that Japan and the United States
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents