In Which Currency System Is the Exchange Rate Determined Only

question 80

Multiple Choice

In which currency system is the exchange rate determined only by supply and demand in the currency market?

• A) floating exchange rate
• B) pegged exchange rate
• C) dollarization
• D) managed float

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Definitions:

Liabilities

Financial obligations or debts that an entity owes to others, which are expected to be settled over time through the transfer of economic benefits.

Accumulated Depreciation

Accumulated depreciation represents the total amount of depreciation expense that has been recorded against a fixed asset since it was acquired and put into use.

Retained Earnings

The amount of net income left over for a business after it has paid out dividends to its shareholders.

Journalizing

Journalizing is the process of recording transactions in the accounting journals as part of the double-entry bookkeeping system.