Generally, Which of the Following Is the Most Common Reason

question 9

Multiple Choice

Generally, which of the following is the most common reason why countries that experienced a financial crisis could not maintain their fixed exchange rate?

• A)They were exporting too many commodities.
• B)The rates they had established were not in accordance with directives from the IMF.
• C)The exchange rate parities established were inconsistent with their corresponding macroeconomic policies.
• D)The general public refused to participate.
• E)The parities established made their currencies undervalued.

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Definitions:

Insurance Expense

The cost incurred by a company to obtain insurance coverage, recognized as an expense over the period the insurance coverage is applicable.

Sales Receipt

A document that provides proof of a sales transaction, detailing the goods or services purchased and the amount paid.

Rental Contract

A legal agreement between a landlord and tenant detailing the terms and conditions for renting property or equipment.