Everything Else Being Equal,if the Dollar Depreciates Against the Chinese

question 169

Multiple Choice

Everything else being equal,if the dollar depreciates against the Chinese yuan,________.

• A) China will stop trading with the United States
• B) the Chinese government will buy yuan from the foreign exchange market
• C) China will export more to and import less from the United States
• D) China will import more from and export less to the United States

---

Definitions:

Bonds Payable

A long-term liability account on a company's balance sheet, representing bonds that the company is obligated to repay at a specified future date.

Additional Paid-in Capital

The amount of money investors pay for shares over the par value, reflecting the additional funds contributed by shareholders.

Fair Value

An estimate of the price at which an asset or liability could be exchanged in a current transaction between willing parties, other than in a liquidation sale.