An Example of an Uncontrollable Variable to a Chain Supermarket

question 48

Multiple Choice

An example of an uncontrollable variable to a chain supermarket owner/manager is _____.

• A)legal restrictions relating to price advertising
• B)store cleanliness
• C)choice of an upscale target market
• D)width and depth of assortment

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Definitions:

Covered Interest Arbitrage

A strategy involving the conversion of currency into another at current exchange rates, investment in foreign interest-bearing instruments, and the simultaneous hedging of exchange rate risk with a forward contract.

Currency Futures

Standardized contracts to buy or sell a specific currency at a future date and at a predetermined price on the foreign exchange market.

Commodity Futures

Financial contracts obligating the buyer to purchase an asset or the seller to sell an asset, like a physical commodity or a financial instrument, at a predetermined future date and price.

Interest Rate Parity

A financial theory which suggests that the difference in interest rates between two countries is equal to the expected change in exchange rates between their currencies.