If the Utility Numbers We Assign to Objects Have No

question 15

Multiple Choice

If the utility numbers we assign to objects have no meaning other than to represent the ranking of these goods in terms of a person's preferences, then utility is measurable in the

• A) ordinal sense
• B) cardinal sense
• C) rational sense

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Definitions:

Forward Rates

Future interest rates derived from current term structure of interest rates or from the interest rate swap market, predicting future financial market conditions.

Short-Run Exposure

Refers to the degree to which a company's financial performance is affected by fluctuations in foreign exchange rates over a short period.

Home Currency Approach

A method of currency risk management that converts all foreign currencies and related activity into the domestic currency of the company for analysis and reporting.