Question: The statement that fixed-rate regime is more desirable than floating-rate regime because it offers more exchange rate stability is A. FALSE because exchange rate stability

The statement that fixed-rate regime is more desirable than floating-rate regime because it offers more exchange rate stability is

A.

FALSE because exchange rate stability does not immediately translate to better forecasts and reduced exchange rate risk.
B.

TRUE because exchange rate stability eliminates exchange rate risk.
C.

TRUE because controlled currency value helps exports more competitive.
D.

TRUE because exchange rate stability can help firms form better forecasts.
E.

FALSE because exchange rate stability has nothing to do with economic growth.

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