A Fixed Exchange Rate Can Be Maintained by a Government

question 77

Multiple Choice

A fixed exchange rate can be maintained by a government as long as it has sufficient

• A)supplies of its own currency.
• B)foreign reserves.
• C)gold and other precious metals.
• D)tax revenues.

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Definitions:

Operating Expenses

Costs associated with the normal operations of a business, excluding cost of goods sold and direct labor.

Prepaid Expenses

Expenses paid in advance for goods or services to be received in the future, recognized as assets until used.

Accrued Liabilities

Liabilities for expenses that have been incurred but have not yet been paid or recorded through a standard payment transaction.

Cash Payments

Transactions where payment is made using cash, as opposed to checks, credit cards, or electronic transfers.