Generally, Which of the Following Is the Most Common Reason

question 9

Multiple Choice

Generally, which of the following is the most common reason why countries that experienced a financial crisis could not maintain their fixed exchange rate?

• A)They were exporting too many commodities.
• B)The rates they had established were not in accordance with directives from the IMF.
• C)The exchange rate parities established were inconsistent with their corresponding macroeconomic policies.
• D)The general public refused to participate.
• E)The parities established made their currencies undervalued.

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Definitions:

Variable Overhead Rate Variance

The difference between actual variable overhead costs incurred and the standard variable overhead costs expected for the actual production level.

Fixed Manufacturing Overhead Budget Variance

The discrepancy between the budgeted fixed overhead costs and the actual fixed overhead incurred during production.

Fixed Manufacturing Overhead Volume Variance

The difference between the budgeted and actually applied fixed manufacturing overhead, based on standard costs for a given period.

Fixed Overhead Budget Variance

The difference between actual fixed overhead costs and the budgeted or expected fixed overhead costs.