Which of the Following Correlations Indicates the Lowest Degree of Relationship

question 48

Multiple Choice

Which of the following correlations indicates the lowest degree of relationship between two variables?

• A) 1.0
• B) 0.8
• C) 0.6
• D) 0.2

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Definitions:

Gross Domestic Product

The total market value of all goods and services produced within a country in a specific time period, a primary indicator of economic health.

Recession

A period of GDP contraction that lasts for at least two consecutive quarters within 1 year.

Economic Exposure

A company’s exposure to unexpected change in foreign exchange rates.

Forward Exchange Rate

A financial term describing an agreed exchange rate for the future exchange of two currencies, used primarily for hedging against foreign exchange risk.