The advantage of an effective exchange rate is A) it gives us ...

[asd123]

The advantage of an effective exchange rate is
 
  A) it gives us an accurate gauge for the strengthening or weakening of a currency.
  B) it uses a weighted average of bilateral exchanges based on the country's trading partners.
  C) unreliable because its using different weights to reflect trade flows.
  D) A and B.

Question 2

The purpose of commodity buffer stocks is
 
  (a) to moderate price fluctuations.
  (b) to raise commodity prices.
  (c) to encourage commodity substitution.
  (d) to guarantee national security.

[katheyjon]

Answer to Question 1

D

Answer to Question 2

A