If the Special Drawing Right (SDR) Was Used as an International

question 41

True/False

If the Special Drawing Right (SDR) was used as an international currency,the cost of doing business would likely go up for firms and investors.This is because another step would be added to international transactions,as buyers and sellers would have to convert their local currencies into SDRs.

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Definitions:

Customer Payments

Monies received by a company from its customers in exchange for goods or services provided.

Prepaid Expenses

Expenses paid in advance for goods or services to be received in the future.

Balance Sheet

A financial statement that presents a company's assets, liabilities, and shareholders' equity at a particular point in time, offering a snapshot of its financial condition.

Future Expenses

Anticipated costs or financial obligations a company expects to incur in the future.