All Else Being Equal,a Decrease in the Desirable Characteristics of Foreign

question 88

Multiple Choice

All else being equal,a decrease in the desirable characteristics of foreign financial securities causes the supply of dollars to ________ and the dollar will ________ relative to foreign currencies.

• A) increase; appreciate
• B) increase; depreciate
• C) decrease; appreciate
• D) decrease; depreciate

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Definitions:

General Journal Entry

A record of financial transactions in the order in which they occur, used as the basis for all other financial reports.

Sales Tax

A government-imposed charge on the sale of goods and services.

General Journal Entries

The initial records of financial transactions, entered in the general journal, before they are posted to specific accounts in the general ledger.

Terms of Sale

The conditions under which a seller agrees to sell and a buyer agrees to buy, including payment terms, delivery time, and warranties.