If More Dollars Are Required to Buy a Unit of Foreign

question 20

Multiple Choice

If more dollars are required to buy a unit of foreign currency, then the dollar is:

• A) strengthening.
• B) weakening.
• C) violating the law of one price.
• D) not in equilibrium.

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Definitions:

Equipment

Tangible property owned by a business that is used in its operations to generate income, such as machinery or tools.

Contributed Capital

Funds raised by a company through the issuance of shares to investors, reflecting the equity capital contributed by shareholders.

Total Assets

The sum of all assets (current and non-current) owned by a business.

Retained Earnings

It represents the cumulative amount of net income earned by a company that is retained rather than distributed to its shareholders as dividends.