Which of the Following Is False Concerning Exchange Rates Quoted

question 105

Multiple Choice

Which of the following is false concerning exchange rates quoted in Canada?

• A) They are usually quoted in terms of the foreign currency.
• B) An exchange rate is the price of one country's currency expressed in dollars.
• C) A direct exchange rate quotation in The National Post tells you how many Canadian dollars it takes to buy one unit of the foreign currency quoted.
• D) When an exchange rate is quoted as the units of foreign currency needed to buy one Canadian dollar it is called an indirect exchange rate quote.
• E) A European exchange rate quoted in The National Post will tell you how many units of a foreign currency you can purchase with one Canadian dollar.

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Definitions:

Balance Sheet

Rephrased: The balance sheet is a key financial statement that presents the assets, liabilities, and equity of a company, offering insight into its financial health at a particular moment.

Credits

Entries in accounting that increase liabilities or equity accounts, or decrease asset or expense accounts, reflecting transactions.

Debits

Entries in accounting that are used to record increases in assets or expenses and decreases in liabilities, equity, and revenue.

Capital Balance

The amount of money that a business or individual has invested in an entity, not including profits or losses from operations.