A ________ Exchange Rate Is the Rate That a Firm

question 80

Multiple Choice

A ________ exchange rate is the rate that a firm can tie in for a future transaction date.

• A)fixed
• B)forward
• C)floating
• D)spot
• E)pegged

---

Definitions:

Copper

A red-brown metal, highly conductive of electricity and heat, used extensively in electrical wiring and in making alloys such as bronze and brass.

Zinc

A metallic element used primarily for galvanizing iron and steel to prevent rust and in alloys such as brass, along with various other applications.

Factor Prices

Prices paid for the use of factors of production such as labor, capital, and land.

Production Function

An equation that describes the maximum amount of output that can be produced from a given set of inputs.