A Mechanism for Fixing Exchange Rates Is the

question 144

Multiple Choice

A mechanism for fixing exchange rates is the

• A)Flexible exchange standard.
• B)WTO agreement.
• C)Gold standard.
• D)International Monetary FunD.The gold standard eliminates foreign exchange risk by fixing the price of all currencies to gold.

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Definitions:

Money

A medium of exchange used to facilitate transactions for goods and services.

Net Present Value

A method used to evaluate an investment's profitability by calculating the present values of all cash inflows and outflows.

Delay

The act or instance of postponing or hindering a process, decision, or action.

Projected Cash Inflows

Estimated future cash receipts resulting from business activities like sales, dividends, or loan repayments.