Why Is the Current Exchange Rate System Called a Managed

question 156

Multiple Choice

Why is the current exchange rate system called a managed float?  

• A) because the current exchange rate system is managed by the IMF 
• B) because the current exchange rate system is managed by the World Bank 
• C) because the current exchange rate system recognizes that there will be some intervention by central banks 
• D) because only the forces of supply and demand determine the exchange rates

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Definitions:

Qualitative Assessment

An analysis method that focuses on non-quantifiable factors such as company quality, business model, governance, and risk factors.

Equity Method

An accounting technique used by a company to record its investment in another company when it holds significant influence but not full control.

Amortization

The gradual reduction of a debt over a period of time through regular payments that cover both principal and interest.

Net Book Value

The total value of a company's assets minus its liabilities and intangible assets, indicating the net worth of the company's tangible assets.