US Exports Will Decrease When the Dollar Depreciates If the Depreciation

question 61

Multiple Choice

U.S. exports will decrease when the dollar depreciates if the depreciation is caused by a decrease in demand for:

• A) U.S. goods and services.
• B) international trade.
• C) financial assets.
• D) the other country's currency.

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Definitions:

Accounts Receivable

Represents money owed to a company by its customers for goods or services delivered but not yet paid for.

Indirect Method

A way of calculating cash flows for operational activities by starting with net income and adjusting for non-cash transactions.

Net Income

The total profit of a company after all expenses, including taxes and interest, have been deducted from revenues.

Direct Method

A method of preparing the cash flow statement where actual cash flow information from the company’s operations segment is used directly.