Which of the Following Is Not a Disadvantage of a Freely

question 110

Multiple Choice

Which of the following is not a disadvantage of a freely floating exchange rate system?

• A) It can adversely affect a country that has high unemployment.
• B) It can adversely affect a country that has high inflation.
• C) The government may intervene to change the value of a given currency.
• D) The exchange rate risk is high and may be costly to manage.

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Definitions:

Accounts Payable

Short-term liabilities or money owed by a company to its creditors or suppliers for goods and services that have been delivered but not yet paid for.

Merchandise Inventory

Goods that a retailer, wholesaler, or distributor holds for the primary purpose of selling to customers.

General Journal

A primary accounting record used to document all business transactions in chronological order.

Error In Billing

Mistakes or inaccuracies in the amount charged on an invoice or billing statement.