Which of the Following Operations Benefits from Depreciation of the Firm's

question 49

Multiple Choice

Which of the following operations benefits from depreciation of the firm's local currency?

• A) Borrowing in a foreign country and converting the funds to the local currency prior to the depreciation.
• B) Purchasing foreign supplies.
• C) Investing in foreign bank accounts denominated in foreign currencies prior to depreciation of the local currency.
• D) A and B

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Definitions:

Production Process

The series of steps and operations involved in the creation of goods or services.

Inner Loop

In the context of the circular-flow diagram, it refers to the flow of goods and services from firms to households and the corresponding flow of money from households to firms.

Inputs And Outputs

The resources used in the production process (inputs) and the goods or services produced (outputs) in an economic system.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs and technology.