A Crawling Peg Exchange Rate System Is an Exchange Rate

question 20

Multiple Choice

A crawling peg exchange rate system is an exchange rate system

• A)where the stated official exchange rate remains unchanged day to day but is changed by the government or central bank when economic conditions warrant a change.
• B)where the official exchange rate is denominated in ounces of gold.
• C)where the official exchange rate is determined directly by the real, risk-adjusted interest rate.
• D)using an anchor currency tied to the price of gold.

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Definitions:

Operating Cash Flow (OCF)

Cash generated from a company's regular business operations, indicating its ability to generate sufficient revenue to maintain operations.

Equivalent Annual Cost

A financial metric used to compare the cost effectiveness of various investments with different lifespans, by converting costs into an annualized figure.

Present Value

The present-day worth of future monetary amounts or cash flow series, determined by applying a specified rate of return.

Operating Cash Flows

The cash generated from a company’s normal business operations, indicating its capability to generate sufficient revenue to maintain and grow operations.