Q. Which of the following is NOT an argument for a country allowing its currency to float freely?
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(A)
It allows the country to have sovereignty over its currency.
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(B)
It enables a country to allow its currency to depreciate if it faces balance of payments deficits.
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(C)
It gives greater certainty to firms involved in trade in terms of future revenues.
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(D)
It enables a country to have greater control over its fiscal and monetary policies.
✅ Correct Answer: (C)
It gives greater certainty to firms involved in trade in terms of future revenues.