If a Country's Currency Is Determined Only by the Demand

question 39

Multiple Choice

If a country's currency is determined only by the demand and supply for that country's currency,the country is said to have a

• A)floating exchange rate.
• B)fixed exchange rate.
• C)gold standard.
• D)managed float.

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, with rights to share in its profits and vote in major decisions.

Cash

Liquid currency and resources such as bank deposits that a business has immediate access to for transactions and operations.

Prepaid Insurance

Prepaid insurance is the portion of insurance premiums that has been paid in advance for coverage over future periods, and is classified as a current asset on the balance sheet.

Unearned Revenue

Money received by a business for services or products yet to be delivered or provided; considered a liability until the service or product is delivered.