Deciding which exchange rate should be used in the presentation of financial statements
A) is a rather straight forward decision.
B) is called exchange rate risk.
C) is called market-based exposure.
D) is called balance sheet exposure.
D
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The above figure shows a nation's production function. Point C is ________ and ________ because ________
A) attainable; efficient; the nation is using resources efficiently B) unattainable; inefficient; the nation is using resources efficiently but they could be more efficient C) unattainable; efficient; the nation would be using resources efficiently if they could attain this level of production D) unattainable; inefficient; the nation is using resources inefficiently E) attainable; inefficient; the nation is using resources inefficiently
As the interest rate increases, the opportunity cost of
a. both c and e are correct b. past consumption decreases c. saving increases d. current consumption increases e. borrowing decreases
The following table provides nominal exchange rates for the U.S. dollar.CountryForeign currency/dollarDollar/foreign currencySwitzerland(franc)1.730.578Brazil(real)1.821.549Based on these data, the nominal exchange rate equals approximately ________ reals per Swiss franc or, equivalently, ________ Swiss francs per real.
A. 3.551; 0.282 B. 0.950; 1.053 C. 0.282; 3.551 D. 1.053; 0.950
Over a ten-year period, the Consumer Price Index doubled. On the basis of this information and using the rule of 70, we can say that the average annual rate of inflation over this period was approximately:
A. 10 percent B. 9 percent C. 7 percent D. 5 percent