Which of the Following Statements Is True

question 1

Multiple Choice

Which of the following statements is true?

• A)The demand for foreign currency in the United States increases as the volume of imports increases.
• B)The demand for foreign currency in the United States increases as the volume of exports increases.
• C)The demand for foreign currency in the United States decreases with a decrease in the inflation rate abroad.
• D)The demand for foreign currency in the United States decreases as foreign interest rates rise.
• E)The demand for foreign currency in the United States is unaffected by U.S.demand for foreign goods and services.

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Definitions:

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and net income.

Working Capital Ratio

a financial metric that measures a company's ability to pay off its current liabilities with its current assets, an indicator of financial health.

Total Current Assets

The total value of all assets that are expected to be converted into cash within one year, including cash, inventory, and receivables.

Total Current Liabilities

The sum of all debts and financial obligations a company is expected to pay within one fiscal year.