Which of the Following Statements Is Incorrect

question 26

Multiple Choice

Which of the following statements is incorrect?

• A) A country cannot be open to international capital flows, control its domestic interest rate and fix its exchange rate.
• B) A country can be open to international capital flows and control its own domestic interest rate but it can't fix its exchange rate.
• C) A country can be open to international capital flows, control its domestic interest rate, and fix its exchange rate.
• D) A country can be open to international capital flows and fix its exchange rate but could not also control its own domestic interest rate.

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Definitions:

Interest Revenue

Income earned on investments or money lent, represented by the amount charged to borrowers for the use of the lender's funds.

Elimination

In accounting, the process of removing intercompany transactions from the financial statements of a consolidated group.

Consolidated Financial Statements

Financial reports that aggregate all financial information of a parent company and its subsidiaries, showing the group's overall financial performance and position.

Parent's Share

The portion of equity interest in a subsidiary held by the parent company, reflecting its claim on the subsidiary's assets and income.