A feature of the current monetary system is that
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

The current monetary system, characterized by floating exchange rates, has increased foreign exchange risk for businesses due to the volatility in currency values.

A Feature of the Current Monetary System Is That