Use the Following to Answer Questions

question 73

Multiple Choice

Use the following to answer questions .
Exhibit: Foreign Exchange Market
-(Exhibit: Foreign Exchange Market) Who generates a supply of dollars in the foreign exchange market?

• A) U.S. residents who demand foreign goods, services, and assets.
• B) U.S. residents and firms who wish to sell domestic assets to foreigners.
• C) Foreign residents abroad who demand U.S. goods, services, and assets.
• D) Foreign banks and citizens who wish to increase their holdings of a reserve currency.

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Definitions:

Federal Unemployment Taxes

Taxes imposed on the employer by the federal government that provide benefits for a limited time period to employees who lose their jobs through no fault of their own.

Payroll Tax Expense

Taxes that an employer pays related to the salaries and wages of employees, including social security tax, Medicare tax, and federal and state unemployment taxes.

Medical Insurance Deductions

Amounts deducted from an employee's paycheck to cover health insurance premiums, typically part of an employer's benefits package.

FICA Taxes Payable

Amounts owed by employers for their portion of Social Security and Medicare taxes, required to be remitted to the government.