A Transaction Gain Is Recorded When There Is An

question 9

Multiple Choice

A transaction gain is recorded when there is an:

• A) importing transaction and the exchange rate increases.
• B) exporting transaction and the exchange rate increases.
• C) exporting transaction and the exchange rate decreases.
• D) none of these.

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Definitions:

Planned Investment

Future directed expenditure by firms on physical assets like machinery and buildings, anticipated to enhance productivity.

Interest Rates

The cost of borrowing money or the return on savings, typically expressed as a percentage of the principal sum annually.

Money Supply

The sum of all financial resources circulating within an economy at a particular moment, encompassing cash, coins, and the amounts present in checking and savings accounts.

Recessionary Gap

The difference between the actual output of an economy and its potential output at full employment, during a recession.