Under a Floating Exchange Rate System,if There Occurs a Fall

question 119

Multiple Choice

Under a floating exchange rate system,if there occurs a fall in the dollar price of the franc:

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

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Definitions:

Consolidated Financial Statements

Financial statements that combine the financial information of a parent company and its subsidiaries, presenting it as if the group were a single entity.

Significant Influence

The capacity of an investor to participate in the financial and operating policy decisions of an investee without controlling those decisions.

Statement Of Income

A financial document that summarizes a company's revenues, expenses, and profits over a specific period, typically a quarter or year.

Realized Gains

Profits earned from the sale of assets or investments when they are actually sold, as opposed to when they increase in value on paper.