All of the Following Exchange-Rate Systems Require International Reserves to Finance

question 61

Multiple Choice

All of the following exchange-rate systems require international reserves to finance balance-of-payments disequilibriums except:

• A) Pegged or fixed exchange rates
• B) Managed floating exchange rates
• C) Adjustable pegged exchange rates
• D) Freely floating exchange rates

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Definitions:

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period of time, resulting in a net income or loss.

Post-closing Trial Balance

A list of all accounts and their balances after closing entries are made, serving as a check to ensure that debits equal credits.

Permanent Account Balances

The ongoing balances in balance sheet accounts that are carried over from one accounting period to the next.

Temporary Account Balances

Accounts that are closed at the end of each accounting period, including revenues, expenses, and dividends accounts.