International Businesses Like a Fixed Exchange-Rate System Because

question 53

Multiple Choice

International businesses like a fixed exchange-rate system because

• A)they like large swings in currency values when devaluation or revaluation occur.
• B)they profit by speculating on devaluation or revaluation.
• C)they can plan better if they know what the exchange rate will be.
• D)fixed exchange rates are economically efficient.

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Definitions:

Uniform Commercial Code

A complete collection of regulations that oversee every commercial activity within the United States.

Postdating Checks

Writing a check with a date in the future, which means the check cannot legally be cashed or deposited until that date.

Negotiable Instrument

A voucher guaranteeing that a specified sum of money will be paid, either when demanded or at a certain time, with the payer’s identity specified on the voucher.

Substitute

In a legal or contractual context, to replace one obligation, duty, or individual with another.