When the Foreign Exchange Market Determines the Relative Value of a Currency

question 90

Multiple Choice

When the foreign exchange market determines the relative value of a currency, we say that the country is adhering to a ________ regime.

• A) currency board exchange
• B) pegged exchange rate
• C) fixed exchange rate
• D) floating exchange rate

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Definitions:

Deposits

Money placed into a bank account or with a financial institution for safekeeping.

Bank Statement

A formal accounting by a bank of the adding and subtracting activities that have occurred in one bank account over a stated period of time (usually a month).

Check Register

A personal record book or digital log used to track checks written, deposits made, and the current balance of a checking account.

Outstanding Deposit

A credit that hasn’t yet been recorded by the bank.