Which of the following is an argument for a floating exchange rate system?
A. Each country should be allowed to choose its own inflation rate.
B. Speculation in exchange rates dampens the growth of international trade and investment.
C. Unpredictability of exchange rate movements makes business planning difficult.
D. Removal of the obligation to maintain exchange rate parity destroys a government's monetary control.
E. Trade deficits can be determined by the balance between savings and investment in a country, not by the external value of its currency.
A
You might also like to view...
Which of the following is considered property, plant, and equipment on a classified balance sheet?
A. Supplies B. Investment in Intel Corporation stock C. Land D. Copyright
Which of the following statements about the balance sheet is most correct?
a. The lower (right-hand) section reports cash and other assets. b. The balance sheet reports on a business's operations. c. The asset side of the balance sheet is listed in decreasing order of maturity (i.e., longer maturity assets are listed first). d. The upper (left-hand) section reports liabilities and equity. e. None of the above statements are correct.