Floating Exchange Rates

question 13

Multiple Choice

Floating exchange rates:

• A)make transactions between countries easier.
• B)make monetary policy independent.
• C)constrain monetary policy officials.
• D)all of the above.

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Definitions:

Tax Deductible

Expenses that can be subtracted from gross income to reduce taxable income, ultimately decreasing the tax owed.

Dividends

Money distributed to shareholders by a corporation, usually from the company's profits.

Business Expense

Costs incurred in the ordinary course of business, including salaries, rent, and office supplies, among others.

Dividend Growth Rate

The yearly percent increase in a corporation's dividends for each share.