The Decrease in European FX Volatility During the Last Decade

question 69

Multiple Choice

The decrease in European FX volatility during the last decade has occurred because of

• A)the stabilizing force of the euro.
• B)reduction in inflation rates in European countries.
• C)the reduced volatility in many emerging-market countries.
• D)the greater volatilities of Asian currencies.
• E)the stabilizing force of the euro and reduction in inflation rates in European countries.

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Definitions:

Alternate Form Reliability

A measure of consistency where different versions of a test produce similar results, indicating the test’s reliability over time.

Concurrent Validity

A measure of how well a particular test correlates with a previously validated measure taken at the same time.

Construct Validity

The extent to which a test or measurement tool accurately measures the theoretical construct it is intended to measure.

Content Validity

The extent to which a test measures all aspects of the concept it intends to measure.