Which of the Following Statements Is True

question 5

Multiple Choice

Which of the following statements is true?

• A)The market in which foreign currency is traded for future delivery is called the forward market for foreign exchange.
• B)The market in which foreign currency is traded for future delivery is called the future market for foreign exchange.
• C)The market in which foreign currency is traded for future delivery is called the spot market for foreign exchange.
• D)The market in which foreign currency is traded for future delivery is called the business market for foreign exchange.

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Definitions:

Economic Loss

Occurs when total cost exceeds total revenue, not covering all explicit and implicit costs.

Economic Profit

The separation between whole income and all charges, factoring in both straightforward and subtle costs.

Excess Capacity

The situation where a firm is producing less than the maximum output due to lack of demand.

Profit-Maximizing Rule

A principle stating that profit maximization occurs when a firm's marginal cost equals its marginal revenue.