Question

In which situation is a country most likely to choose a flexible exchange rate for its currency?

A. A country wants to make sure that its currency is stable in all economic situations. B. A country expects its currency to be more valuable than other countries' currency.
C. A country does not want market trends to affect its trade with other countries.
D. A country worries that the value of its currency could rise and fall unpredictably.​

Answer 1

A country most likely chooses a flexible exchange rate when it is open to market trends affecting its currency's value and expects its currency to potentially strengthen.

Step-by-step explanation:

A country is most likely to choose a flexible exchange rate for its currency in the situation where it wants the exchange rate to be determined by market forces rather than by central bank intervention. Based on the provided information, the correct answer is B. A country expects its currency to be more valuable than other countries' currency. This option implies that the country is comfortable with allowing market trends to dictate the exchange rate, which could lead to a strengthening of its currency compared to other countries. This approach would suit a country that is open to fluctuations in exchange rate based on market demand and supply, and is looking to potentially benefit from those changes in the international economic environment.

Answer 2

B. A country expects its currency to be more valuable than other countries' currency.

Step-by-step explanation:

I try C. but it said it was wrong