If the US Dollar Appreciates in the Foreign Exchange Market

question 21

Multiple Choice

If the U.S. dollar appreciates in the foreign exchange market,

• A) American goods will become more expensive for foreign buyers and foreign goods will be cheaper for Americans.
• B) American goods will become less expensive for foreign buyers and foreign goods will be more expensive for Americans.
• C) American goods will become more expensive for foreign buyers and foreign goods will be more expensive for Americans.
• D) American goods will become cheaper for foreign buyers and foreign goods will be cheaper for Americans.
• E) neither the price of U.S. exports nor the price of U.S. imports will change.

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Definitions:

Internal User

Individuals within an organization, such as managers and employees, who use the company's financial information for decision making and operational purposes.

Accounting Data

Information and records relating to the financial transactions of a business.

Accounting Process

The systematic series of steps undertaken to record, classify, and summarize financial transactions and present financial statements.

Tax Returns

Official documents filed with a government body, detailing income earned and taxes owed for the year.