Question 2 of 25 In which situation is a country most likely to choose a flexible exchange rate for its currency? OA. A country believes that its currency will be in low demand in global markets. B. A country worries that the value of its currency could rise and fall unpredictably. C. A country has a reputation for having a strong and stable economy over time. D. A country wants to make sure that its currency is stable in all economic situations.

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter29: International Finance
Section: Chapter Questions
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Question 2 of 25
In which situation is a country most likely to choose a flexible exchange rate
for its currency?
O A. A country believes that its currency will be in low demand in global
markets.
B. A country worries that the value of its currency could rise and fall
unpredictably.
C. A country has a reputation for having a strong and stable
economy over time.
O D. A country wants to make sure that its currency is stable in all
economic situations.
Transcribed Image Text:Question 2 of 25 In which situation is a country most likely to choose a flexible exchange rate for its currency? O A. A country believes that its currency will be in low demand in global markets. B. A country worries that the value of its currency could rise and fall unpredictably. C. A country has a reputation for having a strong and stable economy over time. O D. A country wants to make sure that its currency is stable in all economic situations.
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