Which of the Following Is True

question 44

Multiple Choice

Which of the following is true?

• A)If an exchange rate is allowed to vary across a fixed basket of currencies,it is called a hard peg.
• B)If an exchange rate is not allowed to vary against the target currency,it is called a soft peg.
• C)If an exchange is only allowed to fluctuate within a set band,it is considered to be a flexible exchange rate system.
• D)A soft peg is when a currency's exchange rate is only allowed to fluctuate within a set band.
• E)Any exchange rate policy other than completely flexible exchange rate systems is extremely uncommon today for currencies.

Analyze the financial implications of operational decisions on company profit.

Apply basic mathematical concepts to solve business related problems.

Understand the relationship between supply chain costs, sales, and profit margins.

Develop critical thinking skills in analyzing business case scenarios.

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Definitions:

Enforce

To compel obedience to a law, rule, or obligation through the imposition of penalties or other legal mechanisms.

Warranty Liability

Legal obligation of a seller to compensate the buyer for losses caused by defects or failures in the product warranted.

In Blank

Pertains to a document, especially a financial instrument, left partially unfilled or unsigned, allowing for details to be added later.

Transfer Warranties

Legal assurances provided during the transfer of assets, ensuring certain conditions or elements are true or will be upheld.