Which of the Following Statements Is True

question 75

Multiple Choice

Which of the following statements is true?
i.The flexible and the floating exchange rate systems are equivalent.
ii.The fixed and managed exchange rate systems are equivalent.

• A) i) and ii) are both true
• B) i) is false and ii) is true
• C) i) is true and ii) is false
• D) i) and ii) are both false

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Definitions:

Cash Balance

The amount of cash held in a company's bank account and on hand at any given time.

Dividends Declared

Profits distributed by a company to its shareholders out of its earnings, based on the number of shares owned.

Retained Earnings

Profits that a company has earned to date, less any dividends or other distributions paid to shareholders, often reinvested in the business or kept as a reserve.