Which Standards Development Method Occurs When a Group of Interested

question 7

Multiple Choice

Which standards development method occurs when a group of interested people or organizations agrees on a certain specification without any formal adoption process?

• A)Ad hoc
• B)De facto
• C)Government mandate
• D)Consensus

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Definitions:

Nominal Risk-Free Rate

The rate of return on the safest investments, such as government bonds, without adjusting for inflation.

Forward Rate

The future interest rate agreed upon in a forward contract, which is a derivative financial instrument.

Covered Interest Arbitrage

An investment strategy where an investor takes advantage of the interest rate differential between two countries while hedging exchange rate risk.

Nominal Risk-Free Rate

The nominal risk-free rate is the rate of return on an investment with no risk of financial loss, not adjusted for inflation.