The Daily Percentage Change in an Exchange Rate Is Compared

question 13

Multiple Choice

The daily percentage change in an exchange rate is compared to a normal distribution with the same mean and standard deviation.Which of the following is true

• A) Both small and large exchange rate moves are more likely than with the normal distribution
• B) Small exchange rate moves are less likely and large exchange rate moves are more likely than with the normal distribution
• C) Large exchange rate moves are less likely and small exchange rate moves are more likely than with the normal distribution
• D) Both small and large exchange rate moves are less likely than with the normal distribution

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Definitions:

MC Curve

Refers to the Marginal Cost curve, which depicts the increase in total cost that results from producing one more unit of a good.

ATC Curve

The Average Total Cost curve, a graph that represents the cost per unit of output when all costs (variable and fixed) are considered.

Break-Even Point

The production level at which total revenues equal total expenses, resulting in neither a profit nor a loss.

AVC

Average Variable Cost, the total variable cost divided by the quantity of output produced, representing the variable cost of producing each unit.