Concept explainers
a)
To determine: Whether the given statement is true or false.
Price index:
The weighted average of a price in relative to the given class of services or goods in the given place and during the given period is a price index.
b)
To determine: Whether the given statement is true or false.
Exchange rate:
The price of a country’s currency that in terms of another nation’s currency is the exchange rate. The rate of exchange can be either floating or fixed. The two components of the exchange rates are the foreign currency and the domestic currency.
c)
To determine: Whether the given statement is true or false.
Inflation:
The general increase in the price level of the goods and services in an economy over a period of time is inflation.
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Fundamentals of Corporate Finance
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