If US Assets Are Seen as Having Greater Risk Relative to to Foreign

question 31

Multiple Choice

If U.S. assets are seen as having greater risk relative to foreign assets in the market for foreign exchange, this should cause the:

• A) demand for dollars to increase.
• B) supply of dollars to decrease.
• C) supply of dollars to increase.
• D) dollar to appreciate.

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Definitions:

NSF Fee

A fee charged when a check is presented for payment but the account does not have sufficient funds, standing for Non-Sufficient Funds.

Invoice

A document issued by a seller to a buyer, detailing a transaction and requesting payment.

Non-sufficient Funds

A situation where a bank account does not have enough money to cover a transaction, often resulting in a fee.

Uncollectible Account

An account receivable that is deemed unrecoverable from a debtor, often written off as a bad debt by the company.