When a Currency Is Allowed to Increase or Decrease Freely

question 17

Multiple Choice

When a currency is allowed to increase or decrease freely according to market forces, the currency is said to:

• A) be pegged to another currency.
• B) be less valuable.
• C) have independent float.
• D) devalue.

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Definitions:

Conditional Sale Agreement

A sales contract in which the buyer gains possession of the item, but its title and right of repossession remain with the seller until all payments are made.

Title

A formal right of ownership of property, which signifies the owner's legal possession and control.

Final Payment

The last payment in a series that settles a debt or completes a purchase agreement.

Purchaser

The individual or entity that buys goods or services, also known as a buyer.