If the Demand for U

question 47

Multiple Choice

If the demand for U.S.dollars goes down, the exchange rate will _______ and, as a result, net exports in the United States will _______ .

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

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Definitions:

Days' Sales Uncollected

A financial ratio that indicates the average number of days it takes a company to collect payment after a sale has been made.

Inventory Turnover

A ratio showing how often a company's inventory is sold and replaced over a certain period.

Accounts Receivable Turnover

A financial ratio that measures a company's effectiveness in collecting its receivables or the money owed by clients.

Financial Statement Analysis

The practice of examining and evaluating a firm's financial reports to improve financial decision-making.