The Price of One Currency in Terms of Another Is

question 92

Multiple Choice

The price of one currency in terms of another is called

• A)the exchange rate.
• B)purchasing power parity.
• C)the terms of trade.
• D)a currency band.

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Definitions:

Profit Margin

A financial metric expressed as a percentage that measures how much of every dollar of revenue is retained as profit after all expenses have been deducted.

Net Income

The income a company retains following the subtraction of all expenses and taxes from the gross revenue.

Sales

The total amount of goods or services sold by a company, typically reported within a specific period.

Return On Equity

An indicator of how well management is leveraging company assets to produce profits, found by dividing the net income by the equity of the shareholders.