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Which of the Following Is a Position Taken by Advocates

Question 100

Multiple Choice

Which of the following is a position taken by advocates of a fixed exchange rate system?


A) Removal of the obligation to maintain exchange rate parity would restore monetary control to a government.
B) Destabilizing speculation tends to accentuate the fluctuations around the exchange rate's long-run value.
C) Speculation has negligible impact on foreign exchange rates.
D) The forward exchange market insures against the risks associated with exchange rate fluctuations.

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