Which of the Following Terms Describes an Exchange Rate Regime

question 20

Multiple Choice

Which of the following terms describes an exchange rate regime in which the government intervenes in the foreign exchange market in order to influence the market determined exchange rate?

• A)Fully convertible
• B)Currency control
• C)Managed float
• D)Clean float

---

Definitions:

Efficiency

The ratio of the output generated to the input used, expressing the effectiveness of a system or process in utilizing resources.

Break Even

The point at which total revenues equal total costs, resulting in no profit or loss.

Variable Costs

Costs that change in direct proportion to the level of production or business activity.

Profit

The financial gain or return derived from an investment, transaction, or operation after subtracting all costs, expenses, and taxes.