Under a Managed Float

question 17

Multiple Choice

Under a managed float,

• A) currency traders "buy low and sell high"
• B) a central bank attempts to stabilize an exchange rate
• C) national governments use fiscal policy to prevent inflation
• D) managers allow product prices to float in response to supply and demand shifts
• E) governments attempt to harmonize their tax policies.

---

Definitions:

Transfer Price

The price at which goods or services are sold between divisions within the same company or between affiliated companies.

Selling Division

A division within a company responsible for the sales and distribution of the company's products or services.

Transfer Price

The price at which goods and services are sold between units of the same organization.

Selling Division

The division or department within a company responsible for the sales and distribution of its products or services.