Multiple Choice
Which one is not a disadvantage of a freely floating exchange rate system?
A) It can adversely affect a country that has high unemployment.
B) It can adversely affect a country that has high inflation.
C) The government may intervene to change the value of a given currency.
D) The exchange rate risk is high and may be costly to manage.
Correct Answer:
Verified
Correct Answer:
Verified
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