Which of the Following Is Assumed Constant in the Quantity

question 163

Multiple Choice

Which of the following is assumed constant in the quantity theory of money?

• A) money supply
• B) velocity
• C) the price level
• D) output

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Definitions:

Remeasurement

The process of converting foreign currency amounts into a functional currency using exchange rates that reflect changes in market conditions.

Translation

The process of converting the financial statements of a foreign subsidiary into the reporting currency of the parent company, according to appropriate accounting standards.

Purpose

The underlying motive or reason for the creation or existence of something.

Translation Adjustment

An adjustment in the financial statements to account for gains or losses that arise from converting foreign currencies into the reporting currency.