If Foreign Interest Rates Rise

question 45

Multiple Choice

If foreign interest rates rise

• A)the demand for domestic currency rises, causing it to appreciate.
• B)the demand for domestic currency falls, causing it to depreciate.
• C)the demand for domestic currency rises, causing it to depreciate.
• D)the demand for domestic currency falls, causing it to appreciate.

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Definitions:

Adjustments

Corrections made to financial records and accounts to accurately reflect income and expenses for a period.

Ledger

A comprehensive record of a company's financial transactions, organized by account, used to compile financial statements.

Accounting Period

A specific period of time covered by accounting records and financial statements, typically a year or a quarter.

Dividends Account

An account in the general ledger that records payouts to shareholders from the company's earnings.