The Daily Percentage Change in an Exchange Rate Is Compared

question 13

Multiple Choice

The daily percentage change in an exchange rate is compared to a normal distribution with the same mean and standard deviation.Which of the following is true

• A) Both small and large exchange rate moves are more likely than with the normal distribution
• B) Small exchange rate moves are less likely and large exchange rate moves are more likely than with the normal distribution
• C) Large exchange rate moves are less likely and small exchange rate moves are more likely than with the normal distribution
• D) Both small and large exchange rate moves are less likely than with the normal distribution

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Definitions:

Debit

An entry on the left side of an account ledger, indicating an increase in assets or expenses, or a decrease in liabilities, equity, or revenue.

Credit

A bookkeeping entry that increases the balance of liabilities and revenue accounts, or decreases the balance of an asset or expense account.

Accounts Receivable

Liabilities customers hold towards a business for the delivery of goods or services that have not been paid off.

Financial Statement

Documents that present the financial activities and condition of a business, including the balance sheet, income statement, and cash flow statement.