Flexible Exchange Rates Are More Volatile Than Floating Ones

question 212

True/False

Flexible exchange rates are more volatile than floating ones.

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Definitions:

Profitability of Operations

An assessment of how efficiently a company generates profit from its core business activities, excluding peripheral activities.

EBIT

An indicator of company profit, Earnings Before Interest and Taxes, which omits the costs related to interest and taxes.

Trade Credit

A financing arrangement where a buyer is allowed to purchase goods or services and pay the supplier at a later scheduled date.

Immediate Payment

A payment that is required to be made at the time of purchase or transaction.