Those Causes of Variation Which Are Large in Magnitude and Are

question 10

Multiple Choice

Those causes of variation which are large in magnitude and are not part of the normal variation are:

• A) stable causes
• B) chance causes
• C) assignable causes
• D) fluctuating causes

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Definitions:

Inflation Rate

The increase in the average price levels of goods and services, resulting in reduced purchasing capacity.

Spot Rate

The ongoing market value at which an individual asset can be acquired or disposed of for immediate transfer.

Spot Exchange Rate

The present rate at which a currency is traded for instant delivery.

Exchange Rate

The price at which one currency can be exchanged for another, which can fluctuate based on supply and demand in the foreign exchange market.