An Exchange Rate System in Which Governments and Central Banks

question 118

Multiple Choice

An exchange rate system in which governments and central banks do not participate in the Jcurrency market is a(n)

• A) managed float system.
• B) free-floating exchange rate system.
• C) commodity standard system.
• D) fixed exchange rate system.

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Definitions:

Retained Earnings

Retained earnings refer to the portion of net income left over after dividends are paid out to shareholders, which is reinvested into the company.

Retroactive Restatement

Adjusting previously reported financial statements to reflect better understanding or corrections of past errors.

Dividend Yield

A financial ratio that indicates how much a company pays out in dividends each year relative to its share price.

Common Stock

Represents ownership shares in a corporation, giving holders a claim on part of the company’s assets and earnings.