The Exchange Rate Arrangement in Which the Currency Is Adjusted

question 22

Multiple Choice

The exchange rate arrangement in which the currency is adjusted periodically in small amounts at a fixed,preannounced rate or in response to changes in selective quantitative indicators is called

• A) Currency Board
• B) Pegged Exchange rate within horizontal bands
• C) Crawling pegs
• D) Exchange rate within crawling bands

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Definitions:

Variable Costs

Costs that change in proportion to the level of activity or volume of production in a business.

Capacity Alternatives

Different options or strategies a business may consider to adjust or increase its capacity to meet demand.

Market Acceptance

The degree to which a new product, service, or business model is embraced by potential customers and the market at large.

Capacity

The maximum level of output that a company can sustain to produce in a given period under normal conditions.