When the Exchange Rate for a Foreign Currency Changes Between

question 8

Multiple Choice

When the exchange rate for a foreign currency changes between a sale and the receipt of payment -

• A)the amount of the bank deposit is determined by the rate at the time of the sale
• B)the amount of the bank deposit is determined by the rate at the time of the receipt
• C)the amount of revenue is determined by the rate at the time of the receipt
• D)the amount of revenue is the average of the two exchange rates

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Definitions:

Supply

The total amount of a product or service that is available for purchase at any given price.

Dollar Appreciates

A situation where the value of the U.S. dollar increases compared to other currencies, affecting international trade and economic dynamics.

Interest Rates

The cost of borrowing money or the rate at which interest is paid by a borrower for the use of money.

Appreciation

An increase in the value of an asset over time, which can result from various factors including inflation, increased demand, or improvements to the asset.