A Flexible Exchange Rate Regime

question 16

Multiple Choice

A flexible exchange rate regime

• A)does not describe the regime follow by the European Central Banks.
• B)keeps the exchange rate fixed but lets the price of gold fluctuate
• C)allows a currency to float
• D)none of these choices.

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Definitions:

Straight-line Depreciation

A technique for distributing the expense of a physical asset across its lifespan in uniform yearly sums.

Plant Asset

An asset used in the operations of a business that is not intended for sale to customers and is referred to as property, plant, and equipment (PP&E) in accounting.

Adjusting Journal Entries

Journal entries made at the end of an accounting period to update certain accounts and ensure they accurately reflect the financial status of the business.

Double-Declining-Balance

A method of accelerated depreciation that doubles the regular depreciation rate, reducing the value of an asset more quickly in its earlier years.