A "good" (or ideal)international monetary system should provide:
A) liquidity, elasticity, and flexibility
B) elasticity, sensitivity, and reliability
C) liquidity, adjustments, and confidence
D) sensitivity, elasticity, and flexibility

Question

Quizplus · Accepted Answer

A good international monetary system should provide liquidity so that transactions can occur smoothly and efficiently across borders. It should also be able to adjust to changes in the global economy, such as fluctuations in exchange rates or trade imbalances. Confidence in the system is crucial to maintaining stability and promoting growth. Therefore, choice C, which includes liquidity, adjustments, and confidence, is the best choice. Sensitivity, elasticity, and flexibility, included in other choices, are important factors but they are not as comprehensive as the combination described in choice C.

A "Good" (Or Ideal)international Monetary System Should Provide