If the Exchange Rate Changes from 40 Thai Baht Per

question 136

Multiple Choice

If the exchange rate changes from 40 Thai baht per dollar to 35 Thai baht per dollar, what has happened to the dollar?

• A)It has appreciated and so buys more Thai goods.
• B)It has appreciated and so buys fewer Thai goods.
• C)It has depreciated and so buys more Thai goods.
• D)It has depreciated and so buys fewer Thai goods.

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Definitions:

Intangible Asset

An asset that lacks physical substance and is not financial in nature, such as patents, trademarks, and copyrights.

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of its net identifiable assets, representing non-physical assets like brand reputation and customer loyalty.

Book Value Decrease

A reduction in the book value of an asset, often due to depreciation, impairment, or disposal.

Inventory Of Minerals

An itemized catalog of mineral resources that a company has in its possession, which can include raw materials, work-in-progress, and finished goods.