Identify the Correct Statement

Multiple Choice

Identify the correct statement.

A) International capital-flow shocks are likely to be less disruptive under fixed exchange-rates.
B) If a country is likely to be buffeted mainly by internal shocks, the country should choose a fixed exchange-rate.
C) The effects of shocks under floating exchange-rates depend on whether interventions are sterilized.
D) International trade shocks can be countered by adopting a fixed exchange rate that helps to improve price competitiveness of the country's products.