An Increase in a Fixed Exchange Rate from $2

question 102

Multiple Choice

An increase in a fixed exchange rate from $2.00 per pound to $2.10 per pound is called a ________ of the pound.

• A) devaluation
• B) depreciation
• C) appreciation
• D) revaluation

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Definitions:

Return on Investment

A measure used to evaluate the efficiency of an investment, calculated by dividing net profit by the cost of the investment.

Profit Center Income Statement

A financial report that measures the profitability of a particular segment, department, or division within a company, distinguishing it from other areas of the business.

Revenues and Expenses

Revenues refer to the money generated from normal business operations while expenses are the costs incurred to generate those revenues.

Purchase Requisitions

Formal requests made within an organization to procure goods or services.