Which of the Following Companies Would Gain from Foreign Currency

question 115

Multiple Choice

Which of the following companies would gain from foreign currency depreciation?

• A)companies which borrow in foreign currency.
• B)companies which export goods and services.
• C)companies which invest in the foreign equity markets.
• D)companies which buy bonds issued by the foreign government.

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Definitions:

Labor Market

The labor market is the marketplace in which workers offer their labor for employment and employers seek to hire them, influenced by supply and demand dynamics.

Accountants

Professionals who perform accounting functions such as audits or financial statement analysis; also responsible for bookkeeping.

Wage Rate

The amount of compensation a worker receives per unit of time or output, often expressed per hour or piece.

Price Floor

A government-imposed minimum price above the market equilibrium price, preventing the price of a good or service from falling below this level.