A System of Managed Floating Exchange Rates Is

question 29

Multiple Choice

A system of managed floating exchange rates is

• A)a system in which governments may attempt to moderate exchange rate movements without keeping exchange rates rigidly fixed.
• B)a system in which governments use flexible exchange rates.
• C)a system in which governments are forbidden from attempt to moderate exchange rate movements without keeping exchange rates rigidly fixed.
• D)a system in which governments need to reach a prior agreement among them before they may attempt to moderate exchange rate movements without keeping exchange rates rigidly fixed.
• E)a system in which governments use extensive fiscal policy to discourage exchange rate movements.

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Definitions:

Revenue

The total income generated by a business from its normal business operations, such as sales of goods or services.

Earned

Income or revenue that has been generated from business activities or services provided.

Cash

Money in the form of coins or banknotes, especially that used to operate a business.

Cash Basis

An accounting method whereby revenues and expenses are recorded when cash is received or paid, rather than when they are incurred.