If the US Dollar Appreciates, This Implies That _____

question 142

Multiple Choice

If the U.S. dollar appreciates, this implies that _____

• A) the value of the U.S. dollar has decreased.
• B) the value of foreign currency in terms of U.S. dollars has increased.
• C) fewer U.S. dollars are required to purchase foreign exchange.
• D) more U.S. dollars are required to purchase foreign exchange.
• E) exports will rise immediately.

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Definitions:

Normal Balance

The side of an account that is usually positive or increased; for assets and expenses, it's the debit side, for liabilities, equity, and revenue, the credit side.

Account

An individual record within a financial system or ledger that tracks the financial transactions of a specific asset, liability, revenue, expense, or equity component.

Normal Balance

The side (debit or credit) on which increases to the account are recorded, consistent with the accounting equation.

Financial Statement

Reports that provide information about a company's financial condition, performance, and cash flows, including the balance sheet, income statement, and statement of cash flows.