All of the Following Are Common Measures Used to Manage

question 19

Multiple Choice

All of the following are common measures used to manage currency fluctuation in international purchasing except _____.

• A)letters of credit
• B)purchase in U.S.dollars
• C)sharing currency fluctuation risk
• D)currency adjustment contract clauses
• E)currency hedging

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Definitions:

Diminishing Marginal Utility

Declining utility, or satisfaction, derived from each additional unit consumed of a particular good or service.

Consumer Surplus

The variance between the total price consumers are inclined and financially capable of paying for a good or service and the amount they actually dispense.

Marginal Utility

The extra utility or satisfaction derived from using or consuming one additional unit of a good or service beyond what was previously consumed.

Total Utility

The total satisfaction received from consuming a particular amount of goods or services.