Which of the Following Best Defines Foreign Exchange

question 113

Multiple Choice

Which of the following best defines foreign exchange?

• A)A trade between two countries
• B)The market where exporting and importing activities take place
• C)The price of a currency relative to another currency
• D)The currency of another country used for trading
• E)The currency that the United States uses to buy goods from other countries

---

Definitions:

Favorable

A term often used in financial and operational reporting to indicate better-than-expected performance or results.

Unfavorable

A situation or condition that is disadvantageous, harmful, or detrimental, often used in financial contexts to describe variances or outcomes that negatively impact performance.

Labor Rate Variance

The difference between the actual labor rate paid and the standard labor rate expected, multiplied by the actual hours worked.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, reflecting efficiency in material use.