Under a Fixed Exchange Rate System,if the British Pound Is

question 132

Multiple Choice

Under a fixed exchange rate system,if the British pound is undervalued,the British monetary authorities must

• A)buy pounds or sell dollars.
• B)sell pounds or buy dollars.
• C)sell foreign exchange or gold and buy pounds.
• D)devalue their currency.

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Definitions:

Production Manager

A professional responsible for overseeing the production process within a manufacturing facility, ensuring that goods are produced efficiently, safely, and meet quality standards.

Responsibility Centre

A unit within an organization, such as a department or division, whose manager is accountable for specific financial and operational outcomes.

Controllable

Refers to costs or factors within a business that can be managed or influenced by decisions made by the company.

Uncontrollable

A term referring to factors or costs that cannot be directly controlled or influenced by decisions in the short term.