Exchange Rate Regimes or Systems Range from a Pure 'Free

question 25

Multiple Choice

Exchange rate regimes or systems range from a pure 'free float',where the exchange rate is determined by the unfettered market forces of demand and supply,to a 'fixed-peg system'-more generally referred to as a fixed exchange rate system.The almost pure form of a fixed-pegged system was the:

• A)purchasing power standard.
• B)floating exchange rate.
• C)Fisher effect.
• D)gold standarD.

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Definitions:

Revenue Account

An account that records the income generated from a company's primary operations, such as sales of goods or services.

Post-closing Trial Balance

A summary of all the business accounts after the closing entries are made at the end of the accounting period, ensuring the accounts are balanced.

Trial Balance

A summary listing of the titles and balances of accounts in the ledger, which is used to verify that debits equal credits.

End-of-period Spreadsheet

A financial report or document summarizing the accounting data and transactions at the close of an accounting period, often used for preparing financial statements.