The Implicit Exchange Rate Between Two Currencies When Both Are

question 254

Multiple Choice

The implicit exchange rate between two currencies when both are quoted in some third currency is called a(n) :

• A) Open exchange rate.
• B) Cross-rate.
• C) Backward rate.
• D) Forward rate.
• E) Interest rate.

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Definitions:

Technological Advance

(1) An improvement in the quality of existing products, the invention of entirely new products, or the creation of new or better ways of producing or distributing products. (2) Any improvement in the methods by which resources are combined such that the same quantity of inputs can be made to yield a combination of outputs that is preferred to any combination of outputs that was previously possible.

Freedom of Choice

The right of individuals to make decisions for themselves without undue government restriction.

Society's Wants

The collective desires and needs of a community or society that drive demand and economic activity.