Question

Based on the concept of the "Impossible Trinity" or the inability to achieve simultaneously the goals of exchange rate stability, full financial integration, and monetary independence. If a country chooses to have a pure float exchange rate regime, which two of the three goals is a country most able to achieve?

Answer 1

The answer is: the country should be able to achieve full financial integration and monetary independence

Step-by-step explanation:

If the country decides to use a pure float exchange rate that means that the country will lose its ability to maintain an exchange rate stability.

The exchange rate will now be determined by the exchange market and the government shouldn't intervene with its value.