When the Value of a Currency Is Determined Mostly by Demand

question 169

Multiple Choice

When the value of a currency is determined mostly by demand and supply,but with occasional government intervention,the exchange rate system is defined as

• A)fixed.
• B)floating.
• C)managed float.
• D)Bretton Woods.

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Definitions:

Advantage

The condition of being in a favorable or superior position relative to competitors or alternatives.

Treasury Stock

Shares initially part of the company's outstanding shares that have been repurchased by the company.

Par Value

Par value is the nominal or face value of a bond, share of stock, or a coupon as stated by the issuer.

Stated Value

A per-share amount set by the board of directors for no-par value stock, which is not determined by market forces.