Which of the Following Statements Is True

question 61

Multiple Choice

Which of the following statements is true?
i.The nominal exchange rate is a price.
ii.Both nominal and real exchange rates are expressed in units of domestic currency.

• A) i) and ii) are both true
• B) i) is true and ii) is false
• C) i) is false and ii) is true
• D) i) and ii) are both false

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Definitions:

Operating Costs

The expenses associated with the operation of a business, excluding costs associated with production.

Working Capital

The difference between a company’s current assets and current liabilities, indicating its short-term financial health and operational efficiency.

Net Present Value

A calculation used to assess the profitability of an investment, considering the present value of its future cash flows minus the initial investment.

Payback Period

The duration necessary to regain the investment's cost.