

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 | |