Central Banks Often Intervene in Currency Markets

question 54

Multiple Choice

Central banks often intervene in currency markets. This activity is called

• A) super-pegging.
• B) flexible floating.
• C) currency warfare.
• D) fixing exchange rates.
• E) managed floating.

Learn how to calculate the gain or loss on retirement of bonds before their maturity.

Understand how floating-rate debts function as a protective measure for lenders against the interest rate movements.

Acknowledge the accounting treatment of debt issuance, discount, and premium amortization under generally accepted accounting principles (GAAP) and International Financial Reporting Standards (IFRS).

Recognize the initial recording and subsequent measurement of noncurrent liabilities.

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Definitions:

Promissory Estoppel

A principle enforcing a party’s promise to prevent injustice, even if the promise was not formalized into a contract.

Reasonable Reliance

The act of depending on the promise, statement, or action of another on the grounds that it is sensible and justifiable to do so under the circumstances.

Employment Policy Manual

A document provided by employers to employees, outlining workplace rules, policies, and expectations.

Promissory Estoppel

Promissory estoppel is a legal principle that allows a party to recover on a promise made without a formal contract, provided they have relied on that promise to their detriment.