Under a Purely Flexible Exchange Rate System

question 88

Multiple Choice

Under a purely flexible exchange rate system

• A)supply and demand set the exchange rates.
• B)governments can set the exchange rate by buying or selling reserves.
• C)governments can set exchange rates with fiscal policy.
• D)answers b and c are correct.

---

Definitions:

Unlimited Personal Liability

A legal condition in which an individual can be held entirely responsible for the debts or obligations of a business entity, without limit to the value of that individual's assets.

Partnership Agreement

A contract among business partners detailing the operational and financial arrangements of the partnership.

Management Duties

Responsibilities and tasks that managers are expected to perform in order to ensure the efficient operation of an organization.

Articles of Partnership

A document that outlines the arrangements and conditions under which a partnership operates, including the rights and responsibilities of the partners.