Some Developing Countries Adopted a Managed Float Instead of a Free

question 32

Multiple Choice

Some developing countries adopted a managed float instead of a free float because

• A) a managed float does not require that they hold foreign reserves.
• B) exchange rates are less volatile under a managed float.
• C) there are restrictions on capital mobility under a free float.
• D) none of the above.

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Definitions:

Total Assets

The sum of all current and non-current assets owned by a company, representing its overall value.

Cash Collection

The process of receiving and processing payments from customers, including cash, checks, and credit card payments.

Expense Accounts

Financial accounts used to track money spent or costs incurred in a company's operations.

Credits

Entries in accounting that increase liabilities, revenue, or equity accounts, or decrease asset or expense accounts.