A Pegged Rate Means That the Value of a Currency

question 94

True/False

A pegged rate means that the value of a currency is fixed relative to a reference currency,and then the exchange rate between that currency and other currencies is determined by the reference currency exchange rate.

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Definitions:

Useful Life

The estimated period that an asset is expected to be usable for the purpose for which it was acquired, affecting its depreciation or amortization.

AASB 116

An Australian accounting standard that outlines the accounting treatment for property, plant, and equipment including recognition, depreciation, and impairment.

Revaluations

The process of adjusting the book value of a capital asset or currency to its current market value.

Property, Plant and Equipment

Long-term tangible assets held for business use and not expected to be converted to cash in the short term.