Multiple Choice
Which of the following is not a potential disadvantage of freely floating exchange rates?
A) They require larger amounts of international reserves than other exchange systems.
B) Demand for imports and exports may be influenced by price speculation.
C) There may occur large amounts of destabilizing speculation.
D) Capital movements among nations may be hindered via exchange rate fluctuations.
Correct Answer:
Verified
Correct Answer:
Verified
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