If a Country Chooses to Have a Monetary Policy Oriented

question 23

Multiple Choice

If a country chooses to have a monetary policy oriented toward domestic goals and a fixed exchange rate,then

• A)it can have the freedom of international capital movements.
• B)it cannot have the freedom of international capital movements.
• C)it cannot balance its current account.
• D)it cannot have fiscal policy oriented toward domestic goals.
• E)it cannot control money supply growth.

---

Definitions:

Journal Entries

The record of financial transactions in an accounting system, used to transfer information to the ledger, showing detailed information regarding date, accounts affected, and amounts.

Posted Correctly

The action of accurately recording transactions in the appropriate accounts in an accounting system.

Ledger

A book or digital record in which a company maintains its accounts, tracking all financial transactions systematically.

Financial Statements

Financial statements are formal records of the financial activities and position of a business, person, or entity, providing key information on its financial health.