When Exchange Rates Are Not Determined in the Market but Are

question 239

Multiple Choice

When exchange rates are not determined in the market but are instead set by a country's central bank, we say that the country's exchange rate is

• A)flexible.
• B)fixed.
• C)a nominal exchange rate.
• D)a real exchange rate.
• E)non-convertible.

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Definitions:

Equitable Remedy

Judicial relief granted based on principles of fairness, including actions like injunctions and specific performance, as opposed to monetary damages.

Breach of Contract

An act of failing to fulfill the duties agreed upon in a contract, leading to legal ramifications for the party in breach.

Creditor

An individual or organization that is owed a financial debt or obligation by a debtor.

Refuse Payment

The act of declining to make a payment that is due, often due to a dispute over the service or goods provided.