When the Foreign Exchange Value of the Dollar Is Above

question 6

Multiple Choice

When the foreign exchange value of the dollar is above its equilibrium rate, the U.S. dollar has a tendency to

• A) appreciate.
• B) depreciate.
• C) be revalued.
• D) be devalued.
• E) be inflated.

---

Definitions:

Noncontrolling Interest

Noncontrolling interest, also known as minority interest, represents the portion of a subsidiary company’s equity that is not owned by the parent company.

Acquisition Method

An accounting technique used in consolidating the financial statements of a group of companies when one acquires control over the other.

Consolidated Net Assets

The total assets minus total liabilities of a company and its subsidiaries, reported as a single figure in consolidated financial statements.

Common Stock

A type of equity security that represents ownership in a corporation, with the right to share in dividends and the right to vote in company affairs.