An Appreciation of the U.S.dollar Tends to

question 5

Multiple Choice

An appreciation of the U.S.dollar tends to

• A) discourage foreigners from making investments in the United States.
• B) discourage Americans from purchasing foreign goods and services.
• C) increase the number of dollars that could be bought with foreign currencies.
• D) discourage Americans from traveling overseas.

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Definitions:

Profitability Index

A financial tool that calculates the relationship between the costs and benefits of a project, where a value above 1 indicates a profitable project.

Present Value

The current value of a future sum of money or stream of cash flows, given a specified rate of return.

Initial Investment

The amount of money used to start a project, purchase assets, or establish a business foundation.

Simple Rate Of Return

A method of calculating the return on an investment without taking into account compound interest or the passage of time.