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Which of the Following Is Not a Potential Disadvantage of Freely

Question 5

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 schedules for imports and exports may be price speculation
C) There may occur large amounts of destabilizing speculation
D) Capital movements among nations may be hindered via exchange rate fluctuations

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