Use the Following to Answer Question

question 112

Multiple Choice

Use the following to answer question:
-(Figure: Demand and Supply of Gasoline) Use Figure: Demand and Supply of Gasoline.Given the equilibrium after a change in supply from S₁ to S₂:

• A)at the old price of $2.50,there will be pressure for the price to fall.
• B)the new price will be $2.00.
• C)the new quantity will be 600.
• D)the price will remain constant.

Understand the concepts of foreign exchange and the types of foreign exchange hedging tools.

Calculate the cost and impact of foreign currency transactions on financial statements.

Distinguish between different hedging strategies: fair value hedges, cash flow hedges, and speculative transactions.

Record and adjust foreign currency transactions and hedges according to IFRS 9.

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Definitions:

Private Investment

The expenditure by private sector entities on assets to increase their capacity or efficiency, as opposed to public or government investment.

Foreign Exchange

The trading of one currency for another or the conversion of one currency into another currency, crucial for international trade and investment.

Labor Productivity

A measure of economic performance that compares the amount of goods and services produced with the number of hours worked.

Export Promotion

A development strategy that concentrates on producing for the export market