Exchange Rates That Are Determined by the Unregulated Forces of Supply

question 61

Multiple Choice

Exchange rates that are determined by the unregulated forces of supply and demand are:

• A) managed exchange rates
• B) fixed exchange rates
• C) pegged exchange rates
• D) floating exchange rates

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Definitions:

Retained Earnings

Retained earnings are the portion of a company's profits that is kept or retained within the business for reinvestment or to pay debt, rather than being distributed to shareholders as dividends.

Liability

A company's legal financial debts or obligations that arise during the course of business operations.

Dividends

Regular payments made by a corporation to its shareholders out of its profits or reserves.

Shareholders

Persons or organizations that possess stock in a corporation, thus holding a stake in the business.