Linking Policy Instruments to Target Variables Are the

question 46

Multiple Choice

Linking policy instruments to target variables are the

• A)indices of economic welfare.
• B)structural economic relations.
• C)exogenous nonpolicy variables.
• D)irrelevant side effects.

---

Definitions:

Dollar Change

The difference in an asset's price when compared to a previous price, often used to quantify gains or losses in securities.

Hedge Ratio

The ratio of the size of a position in a hedging instrument to the size of the position being hedged, used to minimize risk.

Dollar Exposure

The extent to which a company or investor is affected by changes in the value of the U.S. dollar against foreign currencies.

Call Delta

An option's sensitivity measure that indicates how much the price of the call option is expected to change in response to a one-point change in the price of the underlying asset.