Multiple Choice
Which of the following is not a disadvantage of floating exchange rates?
A) Speculation can be destabilising.
B) It is impossible for businesses to buy or sell currencies in the short- to medium- term at a fixed rate.
C) Long- term investment may be discouraged.
D) It is difficult for importers and exporters to predict their costs and revenues.
Correct Answer:
Verified
Correct Answer:
Verified
Q11: Assume that there is a balance of
Q12: The Bretton Woods system was abandoned in
Q13: The current account includes the receipt of
Q14: Match the List to each of the
Q15: Under a system of floating exchange rates,
Q17: An economy that trades and has financial
Q18: When the exchange rate falls this is
Q19: Match the List to each of the
Q20: Under a floating exchange rate, contractionary monetary
Q21: Match the List to each of the