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Commerce · Q255

Business Environment and International Business

Graduate and Post Graduate · Commerce · question 255

Q255

The main advantage of a system of flexible (floating) exchange rates is that it:

A.
provides certainty for international traders.
B.
provides automatic correction of balance of payments deficits
Answer
C.
reduces international transactions costs
D.
provides policy discipline for governments

Answer: Option B

Solution

Answer: Option B
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