With a Credible Peg, Whenever There Is a Rise in the Foreign

question 3

Multiple Choice

With a credible peg, whenever there is a rise in the foreign interest rate:

• A) there is a drop in the domestic interest rate.
• B) the exchange rate changes.
• C) there is an equal rise in the domestic interest rate.
• D) there will be no change in the domestic interest rate.

---

Definitions:

Information System

A network, usually within an organization, by which information is generated and circulated. This network involves computer systems as well as other mechanisms, such as payroll records, purchasing documents, and managers’ impressions and specific knowledge.

Customer Satisfaction Surveys

Tools or questionnaires used by businesses to evaluate the level of satisfaction of their customers with the company's products or services.

Internal Accounting System

The accounting system that collects, aggregates, and generates and distributes budgeted and actual financial and cost information within the firm for use by executives and managers for both decision making and control.

Management Accounting

The accounting system used within the organization to help the organization achieve its goals.