Which of These Is Defined as a Contractual Agreement That

question 44

Multiple Choice

Which of these is defined as a contractual agreement that states the exchange rate to be used at a future exchange date?

• A) Fixed peg rate
• B) Forward exchange rate
• C) Managed exchange rate
• D) Future strategy rate

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Definitions:

Future Prices

The expected price of a commodity, security, or currency set in a futures contract for delivery and payment at a specified future date.

Consumption Function

An economic formula representing the relationship between total consumption and gross national income, suggesting that people will spend more as their income increases.

Price Level

A metric that represents the median of present prices for all types of goods and services in the economy.

Future Expectations

The anticipations or outlook that consumers and businesses have about economic conditions that affect their spending and investment decisions.