Choose the correct answer and give short explaination. 3. Advantages of a fixed exchange rates include A. Reduction in exchange rate risk for businesses B. Reduction in transactions costs C. Reduction in trading frictions D. All of the above

Choose the correct answer and give short explaination. 3. Advantages of a fixed exchange rates include A. Reduction in exchange rate risk for businesses B. Reduction in transactions costs C. Reduction in trading frictions D. All of the above

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter7: International Arbitrage And Interest Rate Parity

Section: Chapter Questions

Problem 1ST

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Choose the correct answer and give short explaination.

3. Advantages of a fixed exchange rates include
A. Reduction in exchange rate risk for businesses
B. Reduction in transactions costs
C. Reduction in trading frictions
D. All of the above

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