Which One of the Following Is the Best Universal Definition

question 63

Multiple Choice

Which one of the following is the best universal definition of an exchange rate?

• A)Price of one country's currency expressed in terms of another country's currency
• B)Number of foreign dollars that can be purchased for every one U.S.dollar paid
• C)Price of a country's currency expressed in terms of that country's currency unit
• D)Number of units of a currency that were originally required to obtain one euro when a country adopted the euro as its official currency
• E)Price that must be paid to obtain a good or service from another country

---

Definitions:

Stockholders' Equity

Stockholders' Equity is the portion of a company's assets that belongs to shareholders after all liabilities have been subtracted, also known as shareholders' equity.

Net Operating Income

Earnings from a company’s primary business activities, discounting the effects of financing and tax considerations.

Residual Income

The net operating income that an investment center earns above the minimum required return on its operating assets.

Average Operating Assets

The average value of the assets used in the day-to-day operations of a business, calculated over a certain period of time.