Teaching Business Studies International Trade Question Bank MCQ - Trade

  • question_answer
    Direction:  In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?
    Assertion (A) A fixed exchange rate protects only the payer.
    Reason (R) Due to fixed exchange rate, a payer is not exposed to an additional risk.
    Codes

    A)                                  Both A and R are true, and R is the correct explanation of A

    B)                     Both A and R are true, but R is not the correct explanation of A

    C)                     A is true, but R is false

    D)                     A is false, but R is true

    Correct Answer: D


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