A significant problem of a dual exchange rate system is that it
A)is difficult to administer.
B)leads companies to pursue rent-seeking behavior.
C)promotes black markets.
D) All of the above.
E) None of the above.

Question

Quizplus · Accepted Answer

A dual exchange rate system has several problems such as difficulty in administration, rent-seeking behavior by companies, and promotion of black markets. Hence, option D, which includes all these problems, is the correct answer.

A Significant Problem of a Dual Exchange Rate System Is