The Appreciation in the Value of the Dollar in the Early

question 30

Multiple Choice

The appreciation in the value of the dollar in the early 1980s is explained by all of the following except:

• A) The United States being considered a safe haven by foreign investors
• B) Relatively high real interest rates in the United States
• C) Confidence of foreign investors in the U.S.economy
• D) Relatively high inflation rates in the United States

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Definitions:

Current Ratio

An indicator of a business's capability to settle obligations due within a year, measuring its immediate financial solvency.

Quick Ratio

A measure of a company's ability to meet its short-term obligations with its most liquid assets, calculated by subtracting inventories from current assets, then dividing by current liabilities.

Accounts Receivable

Amounts owed to a company by customers for goods or services delivered on credit.

Current Ratio

A liquidity measure that evaluates a company's ability to pay short-term obligations with its current assets.