If You Are an Importer of Goods and You Need

question 103

Multiple Choice

If you are an importer of goods and you need to make payment for the purchase of inventory before the close of business today,which of the below is the correct term for the exchange rate that you will use?

• A) indirect rate
• B) spot rate
• C) direct rate
• D) forward rate

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Definitions:

Output Levels

The total amount of goods or services produced by a company or country within a specific period.

Aggregate Demand Curve

A graphical representation showing the total demand for goods and services within an economy at different price levels.

Price Level

The price level is the average of current prices across the entire spectrum of goods and services produced in the economy, often used as a measure of inflation.

Quantity of Output

The total amount of goods or services produced by a company or country.