All of the Following Are True Concerning the Flexible Exchange

question 171

Multiple Choice

All of the following are true concerning the flexible exchange rate system except one.Which is the exception?

• A)It is the same as a floating exchange rate system.
• B)It is a system in which supply and demand determine the exchange rate.
• C)Government officials have little direct role in the foreign exchange market.
• D)Exchange rates may fluctuate considerably from time to time.
• E)Exchange rates are fixed by the central banks of the various countries.

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Definitions:

Operating Period

Refers to the span of time during which a company conducts its ongoing regular business activities.

Segment Margin

The amount of profit or loss generated by a particular segment of a business, after accounting for the direct and indirect costs associated with that segment.

Segmented Income Statement

A financial statement that breaks down revenues, expenses, and profits by specific segments, such as product lines or geographic areas, within a company.

Variable Expenses

Variable expenses are costs that change in proportion with the level of activity or production volume, such as raw materials and direct labor.