A(n)_________________ allows an optimum currency area to be more likely to experience greater price stability.
A)permanently flexible exchange rate
B)permanently fixed exchange rate
C)managed peg system
D)currency board

Question

Quizplus · Accepted Answer

A permanently fixed exchange rate would provide greater price stability for an optimum currency area since it would eliminate fluctuations in exchange rates and reduce uncertainty for economic agents.

A(n)_________________ Allows an Optimum Currency Area to Be More Likely