In the fixed exchange rate system between two countries, the key influential factor to be considered is

(A). The GDPs of the two countries

(B). The difference in the inflations of the two countries (

C). The growth potentials of the two countries

(D). The relative productivities of the two countries

The floating exchange rate system is good because

(A). all it requires is foreign exchange reserves

(B). it does not require an independent central bank

(C). it eliminates currency risk

(D). it allows for independent domestic monetary policies