Which One of the Following Would Create a Demand for a Foreign

question 91

Multiple Choice

Which one of the following would create a demand for a foreign currency and supply of dollars in the foreign exchange market?

• A) the spending of French tourists in the United States
• B) the purchase of Japanese automobiles by American consumers
• C) the sale of U.S. computer equipment to a French buyer
• D) the purchase of a U.S. shoe factory by a Mexican investor

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Definitions:

Gross Method

An accounting method used to record purchases at the full invoice amount without deducting any cash discounts.

Defective Merchandise

Goods that are damaged or below quality standards, often leading to returns, exchanges, or adjustments in sales and accounting records.

Miscellaneous Accounts

Miscellaneous Accounts are ledger accounts that capture financial transactions not classified under specific account headings, often used for incidental or occasional transactions.

Voucher Register

A record containing details about payment vouchers, including the payee, amount, date, and purpose of each payment.