Which of the Following Is a Characteristic of the Floating

question 54

Multiple Choice

Which of the following is a characteristic of the floating exchange rate regime?

• A)It allows for automatic trade balance adjustments.
• B)The use of monetary policy by the government is restricted.
• C)It allows for greater monetary discipline.
• D)It limits the destabilizing effects of exchange rate speculation.
• E)It eliminates volatility and uncertainty associated with exchange rates.

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Definitions:

Finished Goods Inventory

The completed products that are ready for sale but have not been sold yet.

Yarn

A long continuous length of interlocked fibers used in the production of textiles, knitting, crocheting, sewing, and weaving.

Beginning Finished Goods

The stock of completed goods ready for sale at the beginning of a financial period.

Ending Finished Goods

The inventory of goods that are completed and ready for sale at the end of an accounting period.