When the Exchange Rate Fluctuates Around a Fixed Central Target,allowing

question 38

Multiple Choice

When the exchange rate fluctuates around a fixed central target,allowing for a moderate amount of fluctuation,while tying the currency to the target central rate,the exchange rate is under:

• A)a horizontal band.
• B)a crawling peg.
• C)a managed float.
• D)an independent float.
• E)a currency board.

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Definitions:

Chart of Accounts

A systematic list of all accounts used by an organization, essential for organizing financial information and preparing financial statements.

Merchandising Business

A commercial enterprise that purchases goods in a finished condition for the purpose of resale without further manufacturing.

Contra Accounts

Accounts used in the accounting ledger to reduce the value of a related account when the two are netted together.

Perpetual Inventory

An inventory management system where updates are made continuously as inventory items are bought and sold.