Which Exchange-Rate System Involves a "Leaning Against the Wind" Strategy

question 156

Multiple Choice

Which exchange-rate system involves a "leaning against the wind" strategy in which short-term fluctuations in exchange rates are reduced without adhering to any particular exchange rate over the long run?

• A) Pegged or fixed exchange rates
• B) Adjustable pegged exchange rates
• C) Managed floating exchange rates
• D) Freely floating exchange rates

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Definitions:

Company Accounts

Financial records that detail the financial activities and condition of a business.

Business Transactions

Exchanges involving economic consideration between two entities that affect the financial position of a business.

Debits

Entries that are recorded on the left side of a ledger account which increase asset or expense accounts, or decrease liability, equity, or revenue accounts.

Credit Side

The right side of an accounting ledger where credits are recorded, often indicating a decrease in assets or an increase in liability or equity.