In nations that cannot borrow in their own currencies, which exchange rate system is more destabilizing and less useful in terms of stabilizing GDP?

A) floating exchange rates
B) fixed exchange rates
C) banded exchange rates
D) open pegs

Ans: A) floating exchange rates

Economics

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If the Fed wants to reduce the value of the dollar, it will

A) sell foreign assets and buy dollars. B) sell dollars and buy foreign assets. C) buy foreign assets and also buy dollars. D) sell foreign assets and also sell dollars.

Economics

Barter system is less desirable than using money for exchange because: a. it is a more inefficient and a time-consuming process

b. gold and silver are risky and inconvenient to transport. c. it tends to promote inflation. d. gold and silver are relatively scarcer than other commodities.

Economics