A Factor Helping Determine Demand for the Australian Dollar in the Foreign

question 38

Multiple Choice

A factor helping determine demand for the Australian dollar in the foreign exchange market is

• A)the amount of Australian imports.
• B)the supply of Australian dollars.
• C)the expected future interest rate.
• D)the expected future exchange rate.

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Definitions:

Retained Earnings

The portion of net income that is retained by a company rather than distributed to its shareholders as dividends, which is reinvested into business operations.

Deferred Tax Assets

Financial assets that reduce future tax liability due to temporary differences between the ledger and tax basis of assets and liabilities, or the carryover of unused tax credits/deductions.

Income Tax Expense

The cost to a company for its taxable income, comprising current tax liabilities and deferred tax movements.

Service Revenue

Income earned from the provision of services to customers or clients.