Under a Floating Exchange-Rate System,if the U

question 67

Multiple Choice

Under a floating exchange-rate system,if the U.S.dollar depreciates against the Swiss franc:

• A) American exports to Switzerland will be cheaper in francs
• B) American exports to Switzerland will be more expensive in francs
• C) American imports from Switzerland will be cheaper in dollars
• D) None of the above

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Definitions:

Performance Measures

Quantitative or qualitative gauges used to compare, track, and assess the effectiveness or productivity of different aspects of an organization.

Income

Money received, especially on a regular basis, for work or through investments.

Assets

Economic resources owned or controlled by a business, expected to produce future benefits, including cash, inventory, equipment, and real estate.

Investment Center Residual Income

The net operating income earned by an investment center minus a charge for the capital used to generate those profits, measuring performance beyond generating profits.