In a Currency System Where One Country Can Issue Its

question 32

Multiple Choice

In a currency system where one country can issue its currency only against reserves of a specified foreign currency,the system is a:

• A)pegged system.
• B)floating system.
• C)currency board arrangement.
• D)fixed peg arrangement.

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Definitions:

Entity Method

A consolidation approach in financial accounting where the parent and subsidiary's financial statements are combined as if they were a single entity.

Gross Margin

The difference between revenue and cost of goods sold, which shows the profitability of a company's core activities.

Inventory

The total value of all the goods that a company has in stock and intends to sell.

Non-Controlling Interest

The share of a subsidiary's equity that is not, either directly or indirectly, credited to the parent company.