Trading in Foreign Currencies Has an Effect on World Trade

question 22

Multiple Choice

Trading in foreign currencies has an effect on world trade.For example, a rise in the value of the local currency due to daily flows vis-à-vis other currencies makes exports _________.

• A)less expensive
• B)more expensive
• C)come under government control
• D)parallel with imports
• E)be banned

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Definitions:

Past Data Points

Historical information or measurements that are used for analysis or to predict future trends.

Exponential Smoothing

A time series forecasting method for univariate data that applies decreasing weights to past observations.

Actual Demand

The real or observed demand for products or services in a market, as opposed to forecasted or theoretical demand.

Weighted Moving Average

A forecasting method that assigns different weights to historical data points, prioritizing more recent data in the calculation.