What Kind of Currency Exchange System Will Prevent the Balance

question 44

Multiple Choice

What kind of currency exchange system will prevent the balance of payments from being automatically balanced?

• A) Monetary unions
• B) Fixed exchange rate
• C) Floating
• D) Managed floating

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Definitions:

Writing Checks

The act of completing a check by specifying the date, payee, and amount, and signing it, to instruct a bank to transfer funds.

Adjusted Cash Balance

The cash balance reported in a company's financial statement, modified for factors like outstanding checks or deposits in transit.

Bank Statement

A monthly or quarterly document provided by a bank summarizing the transactions, including deposits and withdrawals, that occurred in a specific account.

Service Charge

A fee collected to pay for services related to the primary product or service being purchased.