When the Exchange Rate Increases (E

question 60

Multiple Choice

When the exchange rate increases (e.g., when the dollar appreciates) ,

• A)the dollar price of foreign goods becomes higher while the foreign price of U.S. goods becomes lower.
• B)the dollar price of foreign goods becomes higher and the foreign price of U.S. goods becomes higher.
• C)the dollar price of foreign goods becomes lower while the foreign price of U.S. goods becomes higher.
• D)Both a and c are correct.

Recognize appropriate and inappropriate uses of home equity loans.

Understand strategies for improving one's credit score.

Know consumer protection laws regarding credit and how they apply to individuals.

Understand the 5 C's of credit and their significance in the credit decision process.

---

Definitions:

Impairment

A decrease in the recoverable value of an asset below its carrying amount on the balance sheet, necessitating a write-off.

Goodwill

The intangible asset that arises when a company acquires another for a price higher than the fair value of its identifiable tangible and intangible assets.

Indefinite Useful Life

An intangible asset that is not expected to deplete over a measurable period of time, and hence is not amortized.

Consolidated Income Statement

A financial statement that shows the aggregate operating results of a parent company and its subsidiaries as if the group were a single entity.