The Ratio That Measures the Value of One Currency in Terms

question 50

Multiple Choice

The ratio that measures the value of one currency in terms of another is called the

• A)currency ratio.
• B)exchange ratio.
• C)exchange rate.
• D)balance of payments.

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Definitions:

Current Asset

A resource anticipated to be transformed into cash, disposed of, or utilized within a year or the length of the operating cycle, whichever duration is greater.

Order of Liquidity

Refers to the sequence in which assets are ranked based on how quickly they can be converted into cash, with cash being the most liquid asset.

Accounts Payable

A liability to a creditor, carried on open account, usually for purchases of goods and services.

Notes Payable

Financial obligations represented by formal written agreements to pay specified amounts at determined future dates.