Which of the Following Is a System Under Which a Country's

question 100

Multiple Choice

Which of the following is a system under which a country's currency is nominally allowed to float freely against other currencies,but in which the government will intervene,buying and selling currency,if it believes that the currency has deviated too far from its fair value?

• A)Fixed exchange rate
• B)Free float
• C)Pegged float
• D)Dirty float

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Definitions:

Absorption Costing

An accounting method that assigns all manufacturing costs, both variable and fixed, to products, thereby impacting the inventory valuation on the balance sheet.

Net Operating Income

The profit a company makes from its operations, calculated as total revenue minus operating expenses, excluding taxes and interest.

Variable Costing

An accounting method that only includes variable production costs—direct materials, direct labor, and variable manufacturing overhead—in product costs.

Absorption Costing

A product costing technique that adds up all manufacturing expenses — direct materials, direct labor, variable, and fixed overheads — into the comprehensive cost of the product.