When the Market Value of the Dollar Falls Relative to Other

question 24

Multiple Choice

When the market value of the dollar falls relative to other currencies around the world,we say that

• A)the dollar has appreciated.
• B)the dollar has depreciated.
• C)the demand for dollars has decreased.
• D)the supply of dollars has decreased.

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Definitions:

Subsidiary Ledger

A detailed ledger that contains the individual accounts related to a specific main account, aiding in the organization and breakdown of financial information.

Balance Sheet

A ledger entry that captures the financial position of a business, enumerating assets, liabilities, and the stake of shareholders at an exact moment.

Original Investments

The initial amount of money or value of assets put into a business or project by its founders or investors.

Net Income

The total earnings of a company after subtracting all expenses, including taxes and operating costs, from its total revenues.