One of the Principal Advantages of Adopting a Fixed Exchange

Multiple Choice

One of the principal advantages of adopting a fixed exchange rate is

A) relinquishing independent monetary policy
B) that it prevents a nation from having to impose restrictions on capital flows
C) that interest rates no longer have to be restricted
D) that currency values may appreciate or depreciate nominally, but cannot fluctuate in real terms
E) that the domestic economy is insulated from events overseas