A Situation When More Than One Central Bank Attempts to Shift

question 34

Multiple Choice

A situation when more than one central bank attempts to shift the equilibrium exchange rate to support a targeted exchange rate is called

• A) sterilization.
• B) a currency crisis.
• C) coordinated intervention.
• D) an application of special drawing rights.
• E) a floating exchange rate system.

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Definitions:

Debt to Equity Ratio

A financial ratio that compares the total liabilities of a company to the total amount of shareholder equity.

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity position of the business.

Long Term Liabilities

Obligations or debts that are due to be paid after one year or more, such as bonds payable or long-term loans.

Price-Earnings Ratio

A financial ratio that measures a company's current share price relative to its per-share earnings, used for valuing companies and comparing their financial health.