If the USDollar Appreciates Relative to Foreign Currency,what Is Likely to Be

question 13

Multiple Choice

If the U.S.dollar appreciates relative to foreign currency,what is likely to be the result for the U.S.company that has branches abroad?

• A) Profits will increase, when measured in U.S. dollars.
• B) Profits will decrease, when measured in U.S. dollars.
• C) Foreign exports to the United States will decrease.
• D) Foreign demand for U.S. goods and services will decrease.

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Definitions:

IRA

An Individual Retirement Account, a saving tool that allows individuals to set aside money for retirement with tax advantages.

401k

A retirement savings plan that is sponsored and set up by an employer for its employees; like other retirement plans, there are strict rules as to when the money can be withdrawn without a penalty and strict contribution limits which change from year to year.

Mortality Table

A statistical table showing the probability of death for each age, used primarily by insurance companies to determine premiums.

Full Retirement Benefit

The total amount of money one is entitled to receive from a pension or retirement fund upon reaching the designated retirement age.