In the context of the International Monetary System, the case for a fixed exchange rate regime claims:

1
Far from correcting trade imbalance, depreciating a currency in the foreign exchange market tends to cause price inflation
2
Floating exchange rate regimes are vulnerable to speculative pressure
3
The goods and service manufactured in the country become more competitive in international markets
4
The need to maintain a fixed exchange rate imposes monetary discipline on a country

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