Under a System of Floating Exchange Rates,a Japanese Trade Surplus

question 59

Multiple Choice

Under a system of floating exchange rates,a Japanese trade surplus against Canada would result in a (an) :

• A) Rise in the dollar price of the yen
• B) Fall in the dollar price of the yen
• C) Rise in the yen price of the dollar
• D) Unchanged dollar/yen exchange rate

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Definitions:

Machine-Hours

A unit of measure that represents the operation of one machine for one hour, used in manufacturing to allocate costs based on machine usage.

Standard Costing System

An accounting system that uses standard costs for determining the cost of products or services, facilitating variance analysis against actual costs.

Standard Hours

The allocated time that is expected to be required to complete a specific task or job in a manufacturing or project environment.

December's Production

The total output or number of units produced by a company or factory during the month of December.