When Exchange Rates Are Not Determined in the Market but Are

question 271

Multiple Choice

When exchange rates are not determined in the market but are instead set by a country's central bank,we say that the country's exchange rate is

• A)flexible.
• B)fixed.
• C)a nominal exchange rate.
• D)a real exchange rate.

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Definitions:

Produced

The completed output of goods or services as a result of manufacturing or production processes.

Materials Price Variance

The difference between the actual cost of materials used in production and the expected (or standard) cost of those materials.

Direct Materials Quantity Variance

The variance between the real amount of materials consumed in production and the anticipated standard amount, multiplied by the cost per unit according to standards.

Direct Materials

Raw materials that can be directly attributed to the production of specific goods or services in a manufacturing process.