Figure 158 Alt Text for Figure 15

question 2

Multiple Choice

Figure 15.8 Alt text for Figure 15.8: In figure 15.8, a graph illustrates the quantity of rupees traded against the exchange rate.
Long description for Figure 15.8: The x-axis is labelled, quantity of rupees traded.The y-axis is labelled exchange rate, Canadian dollar against the rupee, with value 0.02 marked.A straight line supply curve, S, slopes up from the bottom left corner to the top right corner.A straight line demand curve, D, slopes down from the top left corner to the bottom right corner.Curves S and D intersect at point with a y-axis value of 0.02, which is connected to the corresponding y-axis value with a dotted line.
-Refer to Figure 15.8.At what level should the Indian government peg its currency to the Canadian dollar to make Canadian imports cheaper in India?

• A)greater than $.02/rupee
• B)less than $.02/rupee
• C)equal to $.02/rupee
• D)1 rupee per dollar
• E)greater than 0.02 rupees/dollar

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Definitions:

Cash Budget

A cash budget is an estimation of the cash inflows and outflows for a business over a specific period of time, used for managing liquidity and ensuring that the company can meet its financial obligations.

Budgeted Income Statement

A financial statement that projects a company's anticipated revenue, expenses, and profits for a specific period, based on budgeted operations.

Cost of Goods Sold

Cost of goods sold (COGS) is the direct costs attributed to the production of the goods sold by a company, including material and labor costs.

Benefits of Budgeting

The advantages of planning and controlling an organization's or individual's finances, such as better decision-making and financial stability.