Statement: This move has been taken from the point of view of exchange rate management. Assumptions: I. Such a move is not desirable. II. No other move is possible. Options: A . &nbspif only assumption I is implicit. B . &nbspif only assumption II is implicit. C . &nbspif either I or II is implicit. D . &nbspif neither I nor II is implicit. E . &nbspif both I and II are implicit.

Statement:This move has been taken from the point of view of exchange rate manag

Discussion Forum : Statement & Assumptions

Question - Statement:
This move has been taken from the point of view of exchange rate management.
Assumptions:
I. Such a move is not desirable.
II. No other move is possible.

Options:

A . if only assumption I is implicit.

B . if only assumption II is implicit.

C . if either I or II is implicit.

D . if neither I nor II is implicit.

E . if both I and II are implicit.

Answer: Option D
Answer: (d)I is not implicit: since the statement is silent on whether the move would have a good or a bad impact, it does not make any assumption about the move’s desirability. II is also not implicit. In fact, the assumption is on the contrary. If we say that this move has been taken from a particular point of view (that of exchange rate management), we assume that other moves are also possible.

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