Because Central Banks Have Not Been Willing to Give Up

question 25

Multiple Choice

Because central banks have not been willing to give up their option of intervening in the foreign exchange market,the current international financial system can best be described as a

• A)variable-pegged exchange rate system.
• B)moving-pegged exchange rate system.
• C)hybrid of a fixed exchange rate and flexible exchange rate system.
• D)flexible-exchange,dollar-pegged exchange rate system.

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Definitions:

Bank Reconciliation

The process of matching and comparing figures from accounting records against those shown on a bank statement to ensure they are in agreement.

Journal Entries

Records that document financial transactions in an accounting system, indicating the accounts and amounts to be debited and credited.

Bank Memos

Bank memos are notes or records created by a bank to document adjustments made to a bank account, explaining any changes or transactions.

Bank Reconciliation

A process of matching and comparing figures from the accounting records against those shown on a bank statement to ensure they are in agreement and to identify any discrepancies.