Currency Rates of Exchange Are Determined by

question 98

Multiple Choice

Currency rates of exchange are determined by

• A) agreements among governments.
• B) the nations with the strongest armies.
• C) the demand and supply of the currency.
• D) multilateral business agreements.

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Definitions:

Par Value

The face value of a bond or stock as stated by the issuer, which may differ from its market value.

Retained Earnings

Profits that a company retains for reinvestment rather than distributing to shareholders as dividends.

Dividends Payable

A liability account on a company’s balance sheet indicating the amount owed to shareholders in the form of dividends to be paid out.

Stock Split

A corporate action that increases the number of a corporation's outstanding shares by dividing each share, which may lower the share price.