Which of the Following Statements Is True

question 43

Multiple Choice

Which of the following statements is true?

• A)The special drawing right (SDR) is a basket of currencies made up of U.S.dollars, euros, British pounds, and Japanese yen.
• B)Today, only China and Switzerland have currencies fixed to gold.
• C)Currencies whose prices are fixed to the same commodity would ensure that arbitrage will not work and exchange rates will be floating.
• D)A country maintains a floating exchange rate value to weaken the international value of its currency.

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Definitions:

Common Stock

Equity ownership in a corporation, with voting rights and the potential to receive dividends.

Cash Dividend

A payment made by a company to its shareholders, usually as a distribution of profits.

Journal Entry

A record in the books of accounts that represents a business transaction, including the accounts and amounts to be debited and credited.

Dividend Yield Ratio

A business ratio reflecting the amount a firm disburses in dividends annually compared to the price of its shares.