Which of the Following Statements Is True About How Exchange

question 3

Multiple Choice

Which of the following statements is true about how exchange rates are determined?

• A)Exchange rates are determined through the interaction of government policies determining the openness to trade.
• B)Exchange rates are determined through the interaction of buyers and sellers of different currencies.
• C)Exchange rates are determined through the interaction of businesses.
• D)Exchange rates are determined through the interaction of consumers.

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Definitions:

Sales Invoice

A document issued by a seller to a buyer, listing items or services supplied and specifying the amount due for payment.

Purchase Order

A formal document sent from a buyer to a supplier to authorize the purchase of products or services under specified terms and conditions.

Subsidiary Ledger

A detailed ledger that contains the individual accounts needed to support a specific general ledger account.

Accounts Payable

Liabilities of a business that are obligations to pay creditors for goods and services purchased on credit.