An Emerging Market Country That Successfully Used Exchange-Rate Targeting to Lower

question 40

Multiple Choice

An emerging market country that successfully used exchange-rate targeting to lower its inflation from above 100 percent in 1988 to below 10 percent in 1994 (before devaluation) was

• A)Thailand.
• B)Mexico.
• C)The Philippines.
• D)Indonesia.

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Definitions:

Ending Cash Balance

The amount of cash a company has at the end of a given financial period, reflecting all cash inflows and outflows.

Budgeted Cash Receipts

Projected cash inflows for a future period, based on sales forecasts and other receipts.

Budgeted Cash Disbursements

An estimate of all cash payments that a business plans to make over a specific period, including operating expenses, purchase of assets, and other payouts.

Variable Selling Expense

includes costs that vary directly with sales volume, such as commissions, shipping charges, and promotional expenses.