A Type of Sensitivity Analysis (Called What If in Microsoft

question 95

True/False

A type of sensitivity analysis (called what if in Microsoft Excel) involves having the spreadsheet compute the amount a constant value would need to be in order for the result of a particular formula to become a specified amount. _________________________

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Definitions:

Exchange Rate

The value of one currency expressed in terms of another currency, used in international trade and investment transactions.

Commodity

Basic goods used in commerce that are interchangeable with other goods of the same type.

Fixed Exchange Rate System

A currency system where the value of a currency is pegged to another currency, a basket of currencies, or a valuable commodity like gold.

Central Bank

The principal monetary authority of a country, which manages the country's currency, money supply, and interest rates.