Although Fixed Exchange Rates Are Desirable for Many Reasons, Nations

Multiple Choice

Although fixed exchange rates are desirable for many reasons, nations that adopt fixed exchange rates find that:

A) fixed exchange rates are difficult to abandon once they become established.
B) flexible exchange rates actually offer a nation more stability.
C) the rate is often only successful for a few years before the peg is broken.
D) intergovernmental agreements limit the fixed exchange rates to only a few products.