Which of the Following Is Used by Governments for the Convertibility

question 93

Multiple Choice

Which of the following is used by governments for the convertibility of currencies in their countries?

• A) multiple exchange rates
• B) countertrade
• C) import deposit requirements
• D) OTC market

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Definitions:

Coupon Rate

The interest rate on a bond, expressed as a percentage of the bond's face value, paid by the bond issuer to the bondholder.

Current Yield

A bond’s annual coupon payment divided by its price. Differs from yield to maturity.

Coupon Bond

A type of bond that pays the holder a fixed interest amount (coupon) at regular intervals until maturity, at which point the principal amount is returned.

Current Yield

The annual income (interest or dividends) earned from a security, expressed as a percentage of its current market price.