If SA Imposes a Quota on the Importing of Clothing

question 30

Multiple Choice

If SA imposes a quota on the importing of clothing produced in China, so reducing SA imports of clothing, which of the following is true regarding the market for foreign currency exchange?

• A)The demand for rands decreases and the rand depreciates.
• B)The supply of rands increases and the rand depreciates.
• C)The supply of rands decreases and the rand appreciates.
• D)The demand for rands increases and the rand appreciates.

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Definitions:

Cost Flow Assumption

An accounting method used to value inventory and determine the cost of goods sold, such as FIFO (First-In, First-Out) or LIFO (Last-In, First-Out).

Specific Identification

Specific identification is an inventory valuation method that tracks the cost of individual items in inventory and matches those costs with the items' actual sale.

Inventory System

A method for tracking the quantities, locations, and statuses of products a company has in stock, both for sales and production purposes.

Computerized

Systems or processes that are performed or managed by computers, typically involving automation of manual tasks.