Which of the Following Statements Is Most Correct

question 108

Multiple Choice

Which of the following statements is most correct?

• A)A central bank can select between a fixed exchange rate and an independent inflation policy provided fiscal policy cooperates
• B)A central bank cannot have both a fixed exchange rate and an independent inflation policy
• C)The central banks of most industrialized countries focus on fixed exchange rates
• D)While most central banks of industrialized countries favor fixing exchange rates, their primary concern is on domestic inflation

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Definitions:

Par Common Stock

The nominal or face value assigned to a share of common stock as stated in the corporate charter, which has little relation to its market value.

Par Preferred Stock

A class of ownership in a corporation with a fixed dividend that is paid out before any dividends are paid to common stockholders.

Date Of Declaration

The specific date on which a company's board of directors announces the issuance of a dividend.

Liability

Financial obligations or debts that an entity is legally required to repay in the future.