Foreign Currency Is

question 61

Multiple Choice

Foreign currency is

• A)the market for foreign exchange.
• B)the price at which one currency exchanges for another currency.
• C)foreign notes, coins and bank deposits.
• D)foreign notes and coins only.
• E)the purchasing power of foreign money.

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Definitions:

Perfectly Inelastic

A situation where the demand for a product does not change in response to a change in price.

Excise Tax

A tax levied on specific goods, services, or transactions, often based on quantity purchased rather than value, such as taxes on cigarettes, alcohol, and fuel.

Excise Tax

A tax imposed on specific goods or services at purchase such as gasoline, tobacco, and alcohol.

Highly Inelastic

Describes a situation where the demand or supply for a good or service is hardly affected when the price changes.