Prior to July 2, 1997, the Thai Government

question 49

Multiple Choice

Prior to July 2, 1997, the Thai government:

• A) allowed the Thai Bhat to float against major currencies.
• B) fixed the Bhat's value against the Korean won only.
• C) fixed the Bhat's value against major currencies especially the U.S. dollar.
• D) none of the above

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Definitions:

Borrowing Money

The act of obtaining funds from another party, often a financial institution, under the agreement to pay back with interest.

Nominal Rate

The interest rate stated on a loan or investment agreement, not taking into account the effects of inflation, and often differing from the real rate of interest.

Compounded Semi-annually

An interest calculation method where interest is added to the principal sum of a deposit or loan twice a year, leading to compound interest.

Effective Rate

The effective rate, also known as the annual equivalent rate, is the interest rate on an investment or loan that accounts for the effects of compounding over a given period.