Which of the Following Are the Words Most Commonly Used

question 49

Multiple Choice

Which of the following are the words most commonly used by economists?

• A)supply and demand
• B)entrepreneurial ability
• C)scarcity and human wants
• D)prices and exchange

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Definitions:

Historical Rate

An exchange rate used to convert amounts related to transactions in foreign currencies based on the rate in effect at the time of the original transaction.

Closing Rate

Closing Rate refers to the exchange rate between two currencies at the end of a trading period, used in accounting to convert the financial statements of foreign subsidiaries.

Spot Rate

The current market price at which a particular currency can be bought or sold for immediate delivery.

Forward Rate

The agreed-upon exchange rate for a currency transaction that will occur at a future date, used as a hedging instrument against currency fluctuations.