At the Equilibrium Exchange Rate

question 92

Multiple Choice

At the equilibrium exchange rate,

• A)the demand for dollars equals the supply of dollars.
• B)a shortage may exist but a surplus may not exist.
• C)a surplus may exist but a shortage may not exist.
• D)the quantity of dollars demanded equals the quantity of dollars supplied.
• E)the Canadian dollar is trading for 100 U.S. cents per Canadian dollar.

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Definitions:

Book Value

The value of an asset as it appears on the balance sheet, determined by cost minus accumulated depreciation.

Depreciable Cost

The cost of an asset that is subject to depreciation over its useful life, excluding any salvage value.

Double-Declining-Balance Rate

A method of accelerated depreciation where an asset's book value is reduced at double the rate of its straight-line depreciation each year.

Double-Declining-Balance Depreciation

A method of accelerated depreciation that applies twice the normal depreciation rate on the declining balance of an asset.