Multiple Choice
One advantage of adopting a fixed exchange rate is that:
A) it makes business planning easier.
B) interest cost fluctuations on foreign loans can be avoided.
C) inflation can be avoided.
D) the country can avoid current account surpluses.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q135: If inflation in Australia is higher than
Q136: What is a 'pegged exchange rate' and
Q137: Investors who sell a country's currency in
Q138: The Bretton Woods System was a system
Q139: Australian currency continues to be backed by
Q140: If interest rates in Australia rise, ceteris
Q141: Hypothetically, what would a report that argues
Q142: Australia currently uses which of the following
Q144: If the average rate of productivity growth
Q165: What does it mean when one currency