The Dominant Use of Dollars in Invoicing U

question 107

True/False

The dominant use of dollars in invoicing U.S.trade helps explain the partial pass-through of changes in the dollar's exchange rate to U.S.import prices.

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Definitions:

Conditional Sales Contract

An agreement for the purchase of goods that does not fully transfer ownership to the buyer until certain conditions, typically full payment, have been met.

Simple Interest

Interest calculated only on the principal amount, or the initial sum of money borrowed or invested, without compounding.

Finance Company

A business that provides loans to individuals and companies, unlike banks, primary lending revolves around installment credit and financing consumer purchases.

Assignable Loan Contract

A loan agreement that allows the lender to transfer the loan to another party.