MCQOPTIONS
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| 1. |
A potential problem with free floating exchange rates is that |
| A. | people who practice arbitrage may gain from the losses of others |
| B. | uncertainty in exchange rate fluctuations may hinder international trade |
| C. | exchange rates may never reach equilibrium |
| D. | the currency markets may become monopolised |
| E. | less developed countries may issue too much currency |
| Answer» D. the currency markets may become monopolised | |