Which of the Following Statements Is False

question 46

Multiple Choice

Which of the following statements is false?

• A) Foreign banks, in addition to having correspondent relation with United States banks, are permitted to set up subsidiaries in this country.
• B) The trust receipt is used by a bank in releasing shipping documents to a customer when the bank wishes to retain title to the merchandise.
• C) A nation with relatively lower interest rate levels will have a relatively stronger currency.
• D) A nation with a relatively lower inflation rate will have a relatively stronger currency.

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Definitions:

Accrual Accounting

An accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when the cash is received or paid.

Proprietary Fund Types

Types of funds used by governmental entities to account for activities similar to those found in the private sector, where the intent is to recover costs through user charges.

Internal Service Funds

Funds used by a government entity to account for the services provided by one department to other departments on a cost-reimbursement basis.

Enterprise Funds

Governmental accounting funds used to account for operations financed and operated in a manner similar to private business enterprises, where the intent is that the costs are financed primarily through user charges.