A System of Fixed Exchange Rates Is More Likely to Give

question 86

True/False

A system of fixed exchange rates is more likely to give rise to exchange controls than is a system of flexible exchange rates.

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Definitions:

Liability

A financial obligation or debt owed by an individual or company to another entity, requiring the transfer of resources at a future date.

Credits

An accounting entry that increases liabilities or equity or decreases assets on a company's balance sheet.

Debits

Debits are accounting entries that increase asset or expense accounts, or decrease liability, equity, or revenue accounts, typically noted on the left side of accounting ledgers.

Dividends Account

An account used to record the payment of dividends, which are distributions of a corporation's earnings to its shareholders.