Since 2009 the IMF's Exchange Rate Regime Classification System Uses

question 26

Multiple Choice

Since 2009 the IMF's exchange rate regime classification system uses a "de facto classification" methodology. Under this system, currencies that are predominantly market-driven are considered to be:

• A) soft pegs.
• B) hard pegs.
• C) floating arrangements.
• D) a residual agreement.

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Definitions:

Net Income

The amount of money a company earns after all expenses, taxes, and costs have been subtracted from total revenue.

Periodic Inventory System

A method of inventory valuation in which updates to inventory levels and cost of goods sold are made periodically, such as at the end of the fiscal year.

Gross Method

An accounting approach for recording purchases at the invoice’s gross amount without deducting any cash discounts for early payment.

Merchandise

Goods bought and sold in the course of business operations.