Which of the Following Statements Is TRUE of a Dirty

question 67

Multiple Choice

Which of the following statements is TRUE of a dirty float?

• A) Exchange rates fluctuate with occasional central bank intervention.
• B) Beneficial exchange rates are offered in trade with certain nations.
• C) Fixed exchange rates are set and maintained by the World Bank.
• D) Currency values rise and fall according to the U.S. dollar.

---

Definitions:

Minimum Acceptable Return

The lowest return on investment that a person or entity is willing to accept, often used in capital budgeting and investment planning.

Invested Assets

Assets that are allocated into various investment vehicles such as stocks, bonds, real estate, or other securities with the expectation of earning a return.

Operating Income

The profit realized from a business's operations, after deducting operating expenses like wages and cost of goods sold from gross profit.

Investment Turnover

A measure of a company's ability to generate sales from its investments; calculated by dividing sales by average invested assets.