Which Exchange Rate Is Used at the End of the Reporting

question 12

Multiple Choice

Which exchange rate is used at the end of the reporting period?

• A) The indirect rate.
• B) The spot rate.
• C) The closing rate.
• D) The ending rate.

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Definitions:

Conglomerates

Large corporations that operate in several industries at the same time.

Laissez-Faire Economy

An economic system in which transactions between private parties are free from government intervention such as regulation, privileges, tariffs, and subsidies.

Purely Capitalist Economy

An economic system characterized by private or corporate ownership of capital goods, investments determined by private decision, and prices, production, and the distribution of goods determined mainly by competition in a free market.

Features of Capitalism

include private property ownership, capital accumulation, wage labor, voluntary exchange, a price system, and competitive markets, driving economic growth and innovation.