Capacity Costs Committed to Only in the Shorter Term Are

question 101

Multiple Choice

Capacity costs committed to only in the shorter term are termed as:

• A)discretionary fixed costs.
• B)relevant costs.
• C)committed fixed costs.
• D)flexible resources.

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Definitions:

Foreign Exchange Market

A global decentralized or over-the-counter market for trading currencies, where participants can buy, sell, exchange, and speculate on currencies.

Interest Rate Parity

A theory which posits that the disparity in interest rates across two nations is identical to the discrepancy between the forward exchange rate and the current spot exchange rate.

Exchange Rate Arbitrage

A strategy involving the simultaneous purchase and sale of a currency to exploit differences in its price in different markets, aiming for a risk-free profit.

Currency Swap

A financial agreement between two parties to exchange principal and/or interest payments of a loan in one currency for equivalent amounts in another currency.