Of the following, which is NOT a trade-off that must be dealt with in any exchange rate regime?
A) cooperation vs. independence
B) rules vs. discretionary action
C) dollars vs. pounds
D) All of the above are rate regime trade-offs.

Question

Quizplus · Accepted Answer

The trade-off between dollars and pounds is not a fundamental trade-off in exchange rate regime choices. The choice of currency depends on the country's specific circumstances and preferences. The other three trade-offs mentioned (cooperation vs. independence, rules vs. discretionary action) are trade-offs that all countries face when selecting an exchange rate regime.

Of the Following, Which Is NOT a Trade-Off That Must