Which of the Following May Not Be True for "Multiple

question 31

Multiple Choice

Which of the following may not be true for "multiple exchange rates"?

• A)They are a form of protectionism.
• B)They try to improve a country's BOP.
• C)They use different exchange rates for different international transactions.
• D)They are less costly to administer than floating exchange rates.

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Definitions:

Cumulative

Refers to something increasing in quantity, degree, or force by successive additions, often used in the context of cumulative dividends or interest.

Non-cumulative

A term, often referring to preferred shares or dividends, indicating that if a dividend is not declared, it does not accumulate and is not owed in future periods.

Participating

In the context of financial securities, participating refers to the characteristic of a security that allows its holder to receive additional dividends or profits beyond a specified amount.

Non-cumulative Preferred Stock

A type of preferred stock where dividends are not accumulated if they are not declared.