Arrange the Following Currency Exchange Systems from the One with Least

question 49

Multiple Choice

Arrange the following currency exchange systems from the one with least independent monetary policy to the most independent monetary policy.
I.Horizontal bands
II.Currency board
III.Fixed peg
IV.Free floating

• A) Free floating, horizontal bands, fixed peg, currency board
• B) Currency board, horizontal bands, free floating, fixed peg
• C) Currency board, fixed peg, horizontal bands, free floating
• D) Horizontal bands, currency board, free floating, fixed peg

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Definitions:

ROE

Return on Equity evaluates a company's profit generation capacity by showing the amount of profit made from the investment of its shareholders.

EPS

Earnings Per Share, a key financial metric calculating the portion of a company's profit allocated to each outstanding share of common stock.

Economic Climate

The overall state of the economic environment, factoring in aspects like growth rates, employment levels, inflation, and consumer spending.

Financial Leverage

Financial leverage refers to the use of debt (borrowed funds) to amplify the potential returns to shareholders. It increases the potential for both gains and losses.