An Exchange Rate System Where Currency Values Are Determined by the Forces

question 56

Multiple Choice

An exchange rate system where currency values are determined by the forces of supply and demand and where currency values fluctuate in response to changes in supply and demand is called a(n)

• A)fixed exchange rate system.
• B)floating (flexible) exchange rate system.
• C)managed float exchange rate system.
• D)international financial system.

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Definitions:

Quarterly Estimated Payments

Payments made to the IRS by self-employed individuals or entities that anticipate owing tax of $1,000 or more, paid in four equal installments throughout the year.

Estimated Payment

refers to tax payments made in advance throughout the year, based on an estimate of the taxpayer's annual income.

Corporate AMT Exemption

An exemption that prevents corporations from having to pay the Alternative Minimum Tax up to a certain threshold of income.

AMT

Alternative Minimum Tax, a separate tax system in the United States designed to ensure that certain taxpayers pay at least a minimum amount of tax.