The System Under Which the Exchange Rate Is Always Determined

question 38

Multiple Choice

The system under which the exchange rate is always determined by the forces of demand and supply without any government intervention in foreign exchange markets is a(n) :

• A)fixed exchange rate system
• B)import system
• C)freely floating exchange rate system
• D)export system

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Definitions:

Principals

The original amount of money invested or loaned, on which basis interest and returns are calculated.

Total Commission

The entire amount of money earned by an individual or a company as a result of successfully completing a sale or series of sales.

Commission Payment Plans

Arrangements where salespersons or employees are paid based on their sales or performance, usually as a percentage of the revenue they generate.

Net Proceeds

The total amount received by a seller after all costs and expenses are deducted from the gross proceeds of a sale.