Which Exchange-Rate System Does Not Require Monetary Reserves for Official

question 154

Multiple Choice

Which exchange-rate system does not require monetary reserves for official exchange-rate intervention?

• A) Floating exchange rates
• B) Pegged exchange rates
• C) Managed floating exchange rates
• D) Dual exchange rates

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Definitions:

Social Security Rate

The percentage rate at which income is taxed to fund a country's social security system, which usually provides retirement, disability, and survivor benefits.

Unfunded Pension Liability

The gap between the pension benefits promised to employees and the actual amount of funds available to meet those obligations.

Long-term Liability

Financial obligations of a business that are due beyond the current fiscal year or operating cycle.

SUTA Payable

State Unemployment Tax Act payable, a liability account for taxes owed by employers to state unemployment insurance programs.