Assume a System of Floating Exchange Rates

question 144

Multiple Choice

Assume a system of floating exchange rates.Due to a high savings rate,suppose the level of savings in Japan is in excess of domestic investment needs.If Japanese residents invest abroad,the yen's exchange value will ____ and the Japanese trade balance will move toward ____.

• A) Appreciate,deficit
• B) Appreciate,surplus
• C) Depreciate,deficit
• D) Depreciate,surplus

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Definitions:

Collected In Advance

Revenue received before the related goods or services are delivered, also known as deferred revenue.

Inventory Overstated

Refers to a situation where the recorded amount of inventory is higher than the actual physical inventory, potentially distorting financial statements.

Error Corrections

Adjustments made in financial statements to amend previously incorrect accounting entries and reports.

Originally Reported

Originally reported refers to the initial financial figures or data that were officially announced or published by a company or organization.