An Official Reserve Currency Is

question 10

Multiple Choice

An official reserve currency is:

• A) The currency to which other countries fix their exchange rate to
• B) The currency of the largest economy of the world
• C) The currency of the first country to adopt a gold standard
• D) The currency of the most geographically central country of the world

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Definitions:

Net Present Value

A financial metric used to evaluate the profitability of an investment or project, calculated by summing all expected future cash flows, discounted back to their present value.

Discount Rate

The discount rate that is employed to ascertain the present worth of future cash streams in a discounted cash flow assessment.

MBA Programs

Masters of Business Administration programs, advanced degrees focusing on business management, leadership, and specialized areas of study.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period, used in capital budgeting to assess the profitability of an investment.