For the Three Years from Early 2002 to Early 2005

question 58

Multiple Choice

For the three years from early 2002 to early 2005, the euro maintained a strong and steady rise in value against the U.S. dollar (USD) . After a brief respite in 2005, the euro continued its climb against the USD into 2008. Which of the following were NOT a contributing factor in the assent of the euro and the decline in the dollar?

• A) severe U.S. balance of payments deficits
• B) a general weakening of the dollar after the attacks of September 11, 2001
• C) large U.S. balance of payment surpluses
• D) All of the above were contributing factors.

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Definitions:

Tax Paid

The amount of money paid to the government as a result of taxable activities, such as income earned or goods sold.

Ending Fixed Assets

The value of a company's physical assets, such as property, buildings, and machinery, at the end of an accounting period.

Cash Flow From Assets

The total of cash flow to bondholders and cash flow to shareholders, consisting of operating cash flow, capital spending, and additions to net working capital.

EBIT

Earnings Before Interest and Taxes, a measure of a company's profitability based purely on operational and business activities without considering interest and tax expenses.