In a Foreign Exchange Market

question 82

Multiple Choice

In a foreign exchange market:

• A)exporters are exposed to the risk of an appreciation of the domestic currency
• B)domestic companies can borrow in a foreign currency
• C)importers sell foreign currency
• D)investors in foreign assets are exposed to the risk of an appreciation in the foreign currency
• E)investors can buy foreign securities.

---

Definitions:

Absolute Threshold

The smallest amount of physical stimulation required to detect a sensory input half of the time it is present.

Signal Detection

A theory and method for quantifying the ability to differentiate between information-bearing patterns and random patterns that distract from the information.

Optic Nerve

A cranial nerve that transmits visual information from the retina to the brain, facilitating the sense of sight.

Blind Spot

The area in the visual field that lacks detection by the retina due to the absence of photoreceptor cells where the optic nerve exits the eye.