A Company with a Payable Denominated in a Foreign Currency

question 92

True/False

A company with a payable denominated in a foreign currency wants the dollar to become weaker because the payment then costs fewer dollars when the transaction is settled.

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Definitions:

Federal Government's Budget

The financial plan for a fiscal year, detailing the government's projected expenses and revenues, managed by the federal government.

Recessionary Gap

A situation where the real GDP is lower than the potential GDP, and the economy is producing below its capacity.

Income Tax Surcharge

An additional charge on the basic income tax liability, often applied to higher income brackets to collect additional revenue from them.

Federal Deficit

The amount by which the government's total budget outlays exceed its total receipts for a fiscal year.