Slight Discrepancies in the Rates of Appreciation Versus Depreciation of Two

question 41

Multiple Choice

Slight discrepancies in the rates of appreciation versus depreciation of two currencies are related to:

• A) a mathematical quirk that percentage increases are always larger than percentage decreases because, in the first case, the denominator is smaller.
• B) the imprecise nature of the calculations.
• C) the lack of reliable information.
• D) the volatile nature of exchange rates.

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Definitions:

Demand Curve

A graph showing the relationship between the price of a good or service and the quantity demanded by consumers.

Supply Curve

Graphically represents the relationship between the price of a good and the quantity of that good that suppliers are willing and able to sell.

Quantity

The amount or number of a material or product available or produced.

Price

The expenditure foreseen, necessary, or allocated in trading for something.