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Author Question: Which of the following is NOT an advantage of floating exchange rates? (Read 114 times)

mydiamond

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Question 1

If an exchange rate falls, and is expected continue falling, there will be ________ speculation.
◦ stabilising
◦ destabilising
◦ no
◦ neutral

Question 2

Which of the following is NOT an advantage of floating exchange rates?
◦ Speculation will always stabilise exchange rates.
◦ Governments are free to choose their own domestic economic policy.
◦ There is no problem of inadequate foreign exchange reserves.
◦ Balance of payments disequilibria are self-correcting.


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Marked as best answer by mydiamond on May 25, 2020

Eunice618

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mydiamond

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Reply 2 on: May 25, 2020
Excellent


vickyvicksss

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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