What Is the Best Way to Describe the Relationship of International

question 58

Multiple Choice

What is the best way to describe the relationship of international currencies to one another?

• A) All currencies are related to the dollar for contractual purposes.
• B) There is a stable standard in the world against which all other currencies are pegged.
• C) All major currencies are free floating relative to one another.
• D) The UN mandates currency valuation.
• E) The World Bank mandates currency valuation.

---

Definitions:

Appliance Manufacturer

A company engaged in the design, production, and sale of electrical or mechanical devices for domestic or commercial use.

MRPs

Material Requirements Planning, a production planning, scheduling, and inventory control system used to manage manufacturing processes.

Least-costly Combination

An optimal mix of inputs that minimizes the cost of production while achieving a desired level of output.

Marginal Productivity Theory

An economic theory proposing that labor and other input costs are based on the marginal contribution of each input to the production process.