Which of the Following Generates a Demand for U

question 136

Multiple Choice

Which of the following generates a demand for U.S. dollars in the currency market?

• A) Japanese tourists shop in Barney's of New York
• B) A Japanese businesswoman sells her U.S. government bonds.
• C) An American citizen buys Japanese Yen for her trip to Japan.
• D) A restaurant in Kansas imports Kobe beef from Japan.

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Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing owners' claims on the company's resources.

Treasury Stock

Shares initially released to the public and then bought back by the corporation that issued them, diminishing the overall supply of shares on the market.

Paid-in Capital

The amount of money that a company has received from shareholders in exchange for shares of stock, above the par value of the shares.

Separate Legal Entity

An entity, such as a corporation or limited liability company, recognized by law as having rights and obligations distinct from those of its members or owners.