Foreign Exchange Rate Stability Is Important Because a Decline in the Value

question 25

Multiple Choice

Foreign exchange rate stability is important because a decline in the value of the domestic currency will ________ the inflation rate,and an increase in the value of the domestic currency makes domestic industries ________ competitive with competing foreign industries.

• A)increase;more
• B)increase;less
• C)decrease;more
• D)decrease;less

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Definitions:

Cash Flow Per Share

A financial metric that measures a company’s operating cash flow divided by the number of its outstanding shares.

IFRS

International Financial Reporting Standards (IFRS) are a set of accounting standards developed by the International Accounting Standards Board (IASB) that guide how financial events are reported in financial statements globally.

GAAP

Generally Accepted Accounting Principles, standard guidelines and procedures for financial accounting and reporting in the U.S.

Indirect Method

A method used in cash flow statements where net income is adjusted for items that affected reported net income but did not result in an actual cash flow.