A Major Problem with Managed Exchange Rates Is

question 114

Multiple Choice

A major problem with managed exchange rates is

• A)A constant excess supply of U.S.dollars.
• B)The steady depletion of foreign exchange reserves.
• C)The determination of the value of a particular currency and which country will maintain that value.
• D)The need for trade restrictions to maintain the desired level of currency value.

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Definitions:

Discount Period

The timeframe within which a buyer can make payment less a discount for early settlement, encouraging quicker payment from customers.

Operating Expense Section

A part of the income statement that lists expenses related to the day-to-day operations of a business, excluding the cost of goods sold.

Wholesaler

An intermediary entity in the distribution channel that buys goods in bulk from manufacturers and sells them to retailers or other businesses, but not directly to consumers.

Contra Account

A contra account is an account used in the general ledger to reduce the value of a related account when the two are netted together.