The Demand Curve for Foreign Exchange

question 73

Multiple Choice

The demand curve for foreign exchange:

• A)slopes downward.
• B)slopes upward.
• C)is horizontal,because no individual country can influence the price of foreign exchange.
• D)is vertical,because no individual country can influence the price of foreign exchange.
• E)may slope downward or upward depending on the volume of imports and exports of the trading countries.

---

Definitions:

Outliers

Observations in data that fall significantly above or below most of the other data points, potentially indicating variability in measurement, experimental errors, or novelty.

Slope of the Variable Cost

Represents the rate at which variable cost changes in relation to a change in output or activity level.

Scatter Diagram

A graphical representation used in statistics to show the relationship between two variables, displaying points at which a variable occurs.

Change in Units

The difference in the number of units, items, or parts between two periods, often used in inventory, production, or sales analysis.