The Exchange Rate for a Foreign Currency That Is Determined

question 155

Multiple Choice

The exchange rate for a foreign currency that is determined by supply and demand is

• A) a fixed exchange rate.
• B) a controlled exchange rate.
• C) a constrained exchange rate.
• D) a flexible exchange rate.

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Definitions:

Balance Sheet

A delineation of a company's financial status including assets, liabilities, and shareholders' equity at an exact point in time.

Liabilities

Sums of money or other financial obligations that a company is required to pay in the future to creditors, lenders, or suppliers.

Assets

Economic resources owned or controlled by a business, expected to provide future benefits.