If Juana Contracts to Buy U

question 59

True/False

If Juana contracts to buy U.S.office equipment in U.S.dollars and her domestic currency depreciates against the U.S.dollar between the time the contract is signed and the bill is paid,she will wind up paying less for the equipment because she stayed in the spot market.

---

Definitions:

Independent Variable

A variable in an experiment or model that is manipulated or changed to observe its effects on a dependent variable.

Seasonal Index

A numerical value or coefficient that adjusts data for seasonal variations, making trends clearer over time.

Monthly Series

A sequence of data points or observations recorded or collected monthly, often used in economic, financial, or performance analysis.

Smoothing Constant

The weighting factor, α, used in an exponential smoothing forecast, a number between 0 and 1.