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:

Production Possibilities Curve

A graphical representation showing the maximum quantity of two goods or services that can be produced within a given time period and with available resources.

Efficiently

The ability to achieve a desired result or produce a desired output with the least amount of waste, effort, or inefficiency.

Capacity

The maximum level of output that a company can sustain to make a product or provide a service.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs, assuming all resources are fully and efficiently utilized.