Chap002 23 - D. the more diversified and more...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
96. Advantages of a fixed exchange rate include A. reduction in exchange rate risk for businesses. B. reduction in transactions costs. C. reduction in trading frictions. D. all of the above 97. Generally speaking, a country would be more prone to asymmetric shocks A. the more diversified and less trade-dependent its economy is. B. the less diversified and more trade-dependent its economy is. C. the less diversified and less trade-dependent its economy is.
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: D. the more diversified and more trade-dependent its economy is. 98. Once capital markets are integrated, it is difficult for a country to maintain a fixed exchange rate. Why? A. The market forces may be stronger than the exchange rate intervention that the government can muster. B. Portfolio managers will not invest in countries with fixed exchange rates. C. Because of the Tobin Tax. D. None of the above...
View Full Document

This note was uploaded on 11/09/2011 for the course FIN IFMG201 taught by Professor Eun during the Spring '11 term at Michigan Flint.

Ask a homework question - tutors are online