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Author Question: Which of the following is NOT a reason for exchange rate volatility? (Read 159 times)

CharlieWard

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Question 1

Which of the following is NOT a disadvantage of floating exchange rates?
◦ Exporting or importing is risky for companies.
◦ Speculation can be destabilising.
◦ Exchange rates may be unstable.
◦ Domestic policy is more constrained by the balance of payments.

Question 2

Which of the following is NOT a reason for exchange rate volatility?
◦ Reluctance of governments to change interest rates to influence domestic policy
◦ Speculation by firms engaged in exporting and importing
◦ Abolition of exchange controls
◦ Uncertainty about future exchange rates


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Marked as best answer by CharlieWard on May 25, 2020

poopface

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CharlieWard

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Reply 2 on: May 25, 2020
Gracias!


Sarahjh

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

 

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