Multiple Select QuestionSelect all that applyWhich of the following are arguments in favor of the managed-float system of exchange rates?Multiple select question.World trade has grown significantly under such a system.The excessive volatility increases the prosperity of economies that rely heavily on exports.It has survived global economic problems that might have caused a fixed-rate system to break down.It is more of a "nonsystem."
Question
Multiple Select QuestionSelect all that applyWhich of the following are arguments in favor of the managed-float system of exchange rates?Multiple select question.World trade has grown significantly under such a system.The excessive volatility increases the prosperity of economies that rely heavily on exports.It has survived global economic problems that might have caused a fixed-rate system to break down.It is more of a "nonsystem."
Solution
The arguments in favor of the managed-float system of exchange rates are:
- World trade has grown significantly under such a system.
- It has survived global economic problems that might have caused a fixed-rate system to break down.
The statement "The excessive volatility increases the prosperity of economies that rely heavily on exports" is not necessarily an argument in favor of the managed-float system. While some economies may benefit from volatility, others may suffer. It depends on various factors, including the nature of the economy, the goods it exports, and its ability to manage risk.
The statement "It is more of a 'nonsystem'" is also not necessarily an argument in favor of the managed-float system. Whether being a 'nonsystem' is beneficial or not depends on one's perspective. Some might argue that a 'nonsystem' lacks the stability and predictability of a fixed-rate system. Others might
Similar Questions
Multiple Select QuestionSelect all that applyWhich of the following are characteristics of the current exchange-rate system?Multiple select question.Exchange rates are allowed to float up and down.Exchange rates are fixed.Exchange controls are regularly used.Nations occasionally use currency intervention.
Multiple Select QuestionSelect all that applyWhich of the following are exchange-rate systems that the world's nations have used over the past 130 years?Multiple select question.Gold standard, which implicitly created fixed exchange ratesFloating exchange rates, which mix mostly flexible exchange rates with occasional currency interventionsBretton Woods system, which was a fixed exchange rate indirectly tied to goldGold standard, which implicitly created flexible exchange rates
Multiple Select QuestionSelect all that applyCritics of exchange controls argue that they do which of the following?Multiple select question.Distort international tradeCreate flexible exchange ratesLimit consumer choiceCreate black markets
Multiple Choice QuestionEconomists consider the current exchange-rate system to be of which type?Multiple choice question.A government-controlled exchange-rate systemA fixed exchange-rate systemA managed floating exchange-rate systemA gold standard exchange-rate system
Multiple Select QuestionSelect all that applyWhich of the following are factors or determinants that would cause a nation's currency to appreciate or depreciate in the market for foreign exchange?Multiple select question.Relative inflation rate changesRelative income changesChanges in unemploymentCurrency speculation
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.