Under a System of Floating Exchange Rates,relatively High Productivity and Low

question 194

Multiple Choice

Under a system of floating exchange rates,relatively high productivity and low inflation rates in the United States result in:

• A) An increase in the demand for foreign currency,a decrease in the supply of foreign currency,and a depreciation in the dollar
• B) An increase in the demand for foreign currency,an increase in the supply of foreign currency,and an appreciation in the dollar
• C) A decrease in the demand for foreign currency,a decrease in the supply of foreign currency,and a depreciation in the dollar
• D) A decrease in the demand for foreign currency,an increase in the supply of foreign currency,and an appreciation in the dollar

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Definitions:

Selling and Administrative Expense

A category of expenses including overheads related to the general operation of a company, such as executive salaries, marketing, office supplies, and utilities.

Direct Method

A method for allocating service department costs directly to producing departments without intermediate allocations among service departments.

Operating Activities

Activities that are directly related to the running of a business and the production of its goods and services, affecting the company's cash flow.

Direct Method

In financial accounting, refers to a way of allocating service department costs directly to producing departments without intermediate allocations.