Differentiate Between the Following Monetary Systems: Floating System, Controlled Float

question 13

Essay

Differentiate between the following monetary systems: floating system, controlled float system and tiered system.

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Definitions:

Contribution Margin

The gap between income from sales and variable expenses, which is utilized to pay for fixed expenses and produce earnings.

Selling Price

Selling price is the amount a buyer pays to purchase a product or service from a seller.

Variable Cost

Costs that change in proportion to the level of goods or services produced, such as materials and labor costs.

Fixed Cost

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance, providing predictability but fixed financial commitments.