What Is a Managed Float

question 147

Multiple Choice

What is a managed float?  

• A) a fixed exchange rate system with regularly scheduled periodic devaluations 
• B) a freely floating exchange rate system 
• C) a hybrid of freely floating exchange rates with occasional intervention by central banks 
• D) a fixed exchange rate system managed by the European Community

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Definitions:

Liabilities

Financial obligations or debts that a company owes to others, reflecting amounts that must be paid in the future.

Authorized Shares

The maximum number of shares a corporation is legally allowed to issue, as stipulated in its articles of incorporation.

Treasury Stock

Shares that were issued and later reacquired by the issuing company, reducing the amount of outstanding stock on the open market.

Cash Dividend

A share of a company's profits paid out to its shareholders in cash.