Table 24-3 the Table Below Pertains to Studious,an Economy in Which the Which

question 36

Multiple Choice

Table 24-3
The table below pertains to Studious,an economy in which the typical consumer's basket consists of 5 books and 10 calculators.

-Refer to Table 24-3.If 2006 is the base year,then the consumer price index was

• A) 100 in 2006,135 in 2007,and 155 in 2008.
• B) 100 in 2006,270 in 2007,and 310 in 2008.
• C) 200 in 2006,135 in 2007,and 155 in 2008.
• D) 200 in 2006,270 in 2007,and 310 in 2008.

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Definitions:

Forward Exchange Contract

A financial derivative that locks in the exchange rate at which a currency can be bought or sold on a future date.

Fair Value Hedge

A hedge of the exposure to changes in fair value of a recognized asset or liability or an unrecognized firm commitment, or an identified portion of such an asset, liability, or firm commitment, that is attributable to a particular risk and could affect profit or loss.

Local Currency Units

The monetary units issued by a country's central bank, used as the standard for financial transactions within that country.

Exchange Rates

The rate at which one currency can be exchanged for another, influencing how much of one currency you get for another.