Which of These Is Defined as the Amount of Foreign

question 118

Multiple Choice

Which of these is defined as the amount of foreign currency it takes to buy one unit of domestic currency?

• A) Exchange rate
• B) Spot transaction
• C) Indirect quote
• D) Direct quote

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Definitions:

Interest Inelastic

A situation where the demand for or the supply of a good or service does not significantly change in response to changes in interest rates.

Reverend Thomas Malthus

An 18th-century economist known for his theory on population growth, suggesting that population increases geometrically, whereas food supply increases arithmetically, leading to inevitable shortages.

Population Growth

The increase in the number of individuals in a population, commonly expressed as an annual percentage.

Dismal Science

A nickname for economics, stemming from its predictions and analyses that often focus on the limitations and constraints of economic activities.