Which of the Following Is True

question 53

Multiple Choice

Which of the following is true?

• A)The present international monetary system can be correctly called a managed floating (flexible) exchange rate system.
• B)The fixed exchanged rate system established by the Bretton Woods Accord broke down in the early 1944 and resulted in the establishment of a managed floating exchange rate system.
• C)Since the creation of the flexible exchange rate system, the values of all currencies in the world are determined independently by the forces of supply and demand.
• D)All of the above are true.

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Definitions:

Regulations

Rules and guidelines issued by governmental agencies to control or direct the conduct of activities.

Foreign Currency

Currency other than the functional currency of the entity, used in international transactions or financial statements.

Reporting Currency

The reporting currency is the currency used to present the financial statements of a company, usually the domestic currency of the country where the company is located.

Gains or Losses

Financial increases or decreases in equity resulting from business activities or investments not directly related to the company’s main operations.