The adoption of a ______________ exchange rate precludes the pursuit of a money supply or an inflation
Target.
A) floating
B) fixed
C) market determined
D) free

Question

Quizplus · Accepted Answer

A fixed exchange rate system requires the central bank to maintain the value of its currency relative to another currency, which often means sacrificing control over its domestic money supply and, by extension, its inflation targets.

The Adoption of a ______________ Exchange Rate Precludes the Pursuit