If the US Dollar Appreciates in the Foreign-Exchange Market, Net Exports Will

question 6

Multiple Choice

If the U.S. dollar appreciates in the foreign-exchange market, net exports will:

• A) increase.
• B) decrease.
• C) be unaffected.
• D) It is impossible to say how net exports will be affected without knowing how net capital outflow is affected.

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Definitions:

Minimum Legal Capital

The least amount of capital that must be raised through the issue of shares for a corporation to be legally established.

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuer.

Premium Capital

Capital that is obtained or raised at a value above its nominal or face value, often reflecting the additional amount paid by investors over the par value of securities or shares.

Stated Value

The nominal value assigned to no-par stock by the issuing company's board of directors.