One advantage of a floating exchange rate system compared to a fixed or managed float exchange rate system is

A) it is easier for central banks to control inflation.
B) there is no need for government intervention.
C) it allows greater exchange rate stability.
D) it eliminates the possibility of depreciation during a recession.


B

Economics

You might also like to view...

Will a perfectly competitive firm ever produce in the short run even though it is suffering an economic loss?

What will be an ideal response?

Economics

A private investment firm that holds a portfolio of securities is called a mutual fund.

Answer the following statement true (T) or false (F)

Economics

If a country has absolute advantage in the production of all goods, then it will have no incentive to trade

Indicate whether the statement is true or false

Economics

Economic analysis indicates that high tax rates will

a. reduce productive activity. b. retard capital formation. c. promote wasteful use of resources. d. all of the above.

Economics