The greater the degree of economic integration between markets in the home country and the base country:
A) the greater the volume of transactions and the greater the benefit to the home country of fixed exchange rates.
B) the smaller the volume of transactions and the lesser the benefit to the home country of fixed exchange rates.
C) the greater the volume of transactions and the greater the benefit to the home country of flexible exchange rates.
D) the less important the volume of transactions and the greater the importance of ethnic similarities.

Question

Quizplus · Accepted Answer

Greater economic integration typically leads to increased transaction volumes between markets, and fixed exchange rates can provide stability and predictability, benefiting the home country in such a scenario.

The Greater the Degree of Economic Integration Between Markets in the Home