Use the Following to Answer Questions

question 39

Multiple Choice

Use the following to answer questions :
Figure 7-1
-Given the curves shown in Figure 7-1, the average variable cost of 3 units of output is:

• A)$3.00.
• B)$8.00.
• C)$16.33.
• D)$25.00.
• E)none of the above.

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Definitions:

Forward Exchange Rate

The agreed-upon exchange rate for currencies to be exchanged on a specified future date.

Swaps

Financial derivatives contracts where two parties agree to exchange one stream of cash flows for another, often used to manage risk or speculate.

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

Currencies

Systems of money in common use, particularly for people in a nation.