Consider the Currency Market for British Pounds and U

question 89

Multiple Choice

Consider the currency market for British pounds and U.S. dollars. A decrease in the supply of British pounds results in

• A) an appreciation of the pound and a depreciation of the dollar.
• B) a depreciation of the pound and a depreciation of the dollar.
• C) an appreciation of the pound and an appreciation of the dollar.
• D) a depreciation of the pound and an appreciation of the dollar.

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Definitions:

Impairment Loss

A reduction in the recoverable amount of a fixed asset or goodwill below its book value, recognized as an expense in the income statement.

Profit Margin

The percentage of revenue that remains after all operating expenses, taxes, and costs have been deducted from total sales.

Net Income

The final amount a company keeps as profit after deducting all costs and taxes from its gross revenue.

Marginal Tax Rate

The rate of tax imposed on your income, corresponding to each applicable tax bracket.