Proponents of a fixed exchange rate system maintain that it is superior to a freely floating exchange rate system because it
A) keeps inflation under control
B) provides a simple and clear exchange-rate target
C) provides continuous adjustment in the balance of payments
D) helps prevent disorderly exchange rate movements that can disrupt trade

Question

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The Answer of Proponents of a fixed exchange rate system maintain that it is superior to a freely floating exchange rate system because it
A) keeps inflation under control
B) provides a simple and clear exchange-rate target
C) provides continuous adjustment in the balance of payments
D) helps prevent disorderly exchange rate movements that can disrupt trade

Proponents of a Fixed Exchange Rate System Maintain That It