The Global Financial Crisis of 2007-2008 Resulted in A(n) ________

question 33

Multiple Choice

The global financial crisis of 2007-2008 resulted in a(n) ________ of the Swiss franc as foreign currency flowed ________ the country. As a result, Swiss products became ________ competitive in world markets.

• A) depreciation; out of; more
• B) depreciation; into; more
• C) appreciation; out of; less
• D) depreciation; out of; less
• E) appreciation; into; less

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Definitions:

Net Asset Balance Sheet Exposure

The risk that the value of a company's assets minus its liabilities, measured in its reporting currency, will decrease due to foreign exchange rate fluctuations.

Translation Adjustment

An adjustment made in the financial statements to account for exchange rate variations in translating operations of foreign subsidiaries into the parent company’s reporting currency.

Foreign Currency

The currency of another country, which can be used for financial transactions, investments, and international trade.