If the Nominal Exchange Rate Is 5 French Francs Per

question 1

Multiple Choice

If the nominal exchange rate is 5 French francs per U.S.dollar, then the exchange rate can also be written as

• A)5 dollars per franc.
• B)0.5 dollars per franc.
• C)0.25 dollars per franc.
• D)0.2 dollars per franc.

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Definitions:

Economic Order Quantity

The optimal quantity of stock to order at one time, considering holding costs and ordering costs, to minimize total inventory costs.

Safety Stock

Additional inventory kept on hand to prevent stockouts caused by fluctuations in demand or supply delays.

Lead Time

The amount of time it takes for a process to go from the initiation phase to its completion.

Monthly Usage

The total amount of a resource or input consumed within a month, often tracked for budgeting and planning purposes.