An Exchange-Rate System in Which the Nominal Exchange Rate Is

question 67

Multiple Choice

An exchange-rate system in which the nominal exchange rate is set by the government is known as

• A)a flexible exchange-rate system.
• B)a floating exchange-rate system.
• C)a fixed exchange-rate system.
• D)an exchange-rate union.

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Definitions:

Long Term

Refers to assets, liabilities, or investments that are expected to be held or have effects for a period longer than one year.

Normal Selling Price

Refers to the standard price at which a good or service is typically sold under normal market conditions.

Excess Capacity

Refers to a scenario where a company is operating below its maximum production capacity and can increase output without incurring significant additional costs.

Special Order

A one-time order that is not part of the company's usual ongoing operations, often requiring special pricing or terms.