If the US Dollar Appreciates Relative to Currencies in Other Countries, Then

question 48

Multiple Choice

If the U.S. dollar appreciates relative to currencies in other countries, then U.S. imports will _____ and exports will _____.

• A) increase; increase
• B) decrease; decrease
• C) decrease; increase
• D) increase; decrease

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Definitions:

Par Stock

A standard inventory level that a business aims to maintain to ensure adequate supplies are available to meet demand without holding excessive stock.

Stock Split

A corporate action where a company divides its existing shares into multiple shares to boost the liquidity of the shares, while maintaining the same total valuation.

Contributed Capital

Funds received by a company from selling its stock to investors, representing the investors' ownership stake in the company.

Par Value

The nominal value of a bond or stock as declared by the issuer, which may not correspond with its value on the market.