Which of the Following Defines a Scratch File

question 69

Multiple Choice

Which of the following defines a scratch file?

• A) A temporary file used during processing and is purged when the operation is completed
• B) A file that stores instructions to tell the computer how to process data
• C) A file that stores permanent records of transactions
• D) A duplicate copy of a file made for security reasons and stored off-site

---

Definitions:

Hedging Transactions

Financial strategies used by companies to protect against potential losses caused by fluctuations in market prices, interest rates, or currency exchange rates.

Functional Currency

The primary currency of the primary economic environment in which an entity operates and carries out its transactions.

Exchange Rate Fluctuations

Variations in the value of one currency in relation to another, affecting the relative price of goods and services between countries and impacting international trade and investments.

Currency Hedge

A financial strategy used to minimize or manage the risks associated with changes in currency exchange rates affecting investments or transactions.