The Strongest Argument in Favor of Fixed Exchange-Rates Is

Multiple Choice

The strongest argument in favor of fixed exchange-rates is:

A) the country's ability to use independent monetary policy to pursue internal balance.
B) that floating exchange rates are often very volatile, disrupting international trade.
C) the ease of defending fixed exchange rates during speculative attacks.
D) that a fixed exchange rate allows unrestricted flow of financial capital from and into a country.