A 'Floating Exchange Rate System' Is One in Which

question 125

Multiple Choice

A 'floating exchange rate system' is one in which:

• A)the central bank does not intervene to adjust the exchange rate.
• B)shortages of foreign exchange will result in an appreciation of the domestic currency.
• C)foreign exchange traders accept only a fixed price for their goods, regardless of the demand and supply for the currency.
• D)the government defines its currency to be worth a certain amount in terms of another currency and ensures that the rate remains at that level.

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Definitions:

Concentrated Liquid

Refers to a solution that has a high proportion of solute compared to its solvent, often requiring dilution before use.

Pre-Mixed Version

A product offered in a form that is ready for use or consumption without the need for further mixing or preparation.

Pharmaceutical Company

A business entity focused on the research, development, and manufacturing of drugs and medications for medical treatment.

Extra-Large Accounts

Extra-Large Accounts refer to customer accounts that represent a significantly high volume of sales or revenue for a company, often requiring special management and strategies.