Which of the following is a feature of the current monetary system?
A)It is free from government intervention.
B)It is free from volatile movements in exchange rates.
C)It has increased foreign exchange risk for businesses.
D)It has made it easier to get insurance coverage against exchange rate changes.
E)Instruments like forward market and swaps have lost their importance in the present system.

Question

Quizplus · Accepted Answer

Under the present system, speculative buying and selling of currencies can create very volatile movements in exchange rates. Volatile exchange rates increase foreign exchange risk and this is not good news for business.

Which of the Following Is a Feature of the Current