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#58805 Bangla Language & Literature General Level 0

What will happen if a country allows its exchange rate to float freely?

  1. A Foreign exchange reserves will no longer be needed
  2. B Inflation will follow the trend of inflation in the country's trading partners
  3. C The current account of the balance of payments will alwayes balanced
  4. D The monetary authorities will lose their ability to control the money supply
Answer: A - Foreign exchange reserves will no longer be needed

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