Which of the Following Best Defines Foreign Exchange

question 6

Multiple Choice

Which of the following best defines foreign exchange?

• A) trade between two countries
• B) the market where exporting and importing activities take place
• C) the price of a currency relative to another currency
• D) revenue from imports
• E) the currency that the United States uses to buy goods from other countries

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Definitions:

Salvage Value

An asset's projected market price at the termination of its serviceable life.

Simple Rate Of Return

The rate of return computed by dividing a project’s annual incremental accounting net operating income by the initial investment required.

Technologically Obsolete

A state where a product or equipment becomes outdated or no longer competitive due to advances in technology.

Discount Rate

This is the interest rate used in discounted cash flow analysis to determine the present value of future cash flows.