Question

Advocates of floating rates pointed out that Group of answer choices removal of the obligation to peg currency values would restore monetary control to central banks. imposing of the obligation to peg currency values would restore fiscal control. imposing of the obligation to peg currency values would restore monetary control to central banks. imposing of the obligation to peg currency would restore monetary control to the consumer. removing of the obligation to peg currency values would restore fiscal control.

Answer 1

removal of the obligation to peg currency values would restore monetary control to central banks.

Step-by-step explanation:

The Federal Reserve (Fed) and Central banks (lender of last resort) are readily accessible and available to give monetary funds to depository financial institutions when they're running out of money and as well as regulate their activities.

Generally, monetary policy affects the money supply in an economy, which then creates an impact on interest rates and the inflation rate.

Hence, advocates of floating rates pointed out that removal of the obligation to peg currency (setting specific fixed exchange rate) values would restore monetary control to central banks.