In a Value Weighted Index

question 65

Multiple Choice

In a value weighted index,

• A) exchange rate fluctuations have a large impact.
• B) exchange rate fluctuations have a small impact.
• C) large companies have a disproportionate influence on the index.
• D) small companies have an exaggerated effect on the index.
• E) None of these are correct.

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Definitions:

Legislative Variations

Differences in laws and regulations across different jurisdictions or over time within the same jurisdiction.

Tax Policies

The set of laws and regulations that determine how taxes are collected, managed, and utilized by the government.

Multiplier

In economics, a factor that quantifies how an initial change in one economic variable (such as investment) will affect changes in other variables, like total output.

MPC

Marginal Propensity to Consume, a measure that describes the proportion of an increase in income that gets spent on consumption rather than being saved.