From Mid-2008 Through Early 2009, the Value of the Dollar

question 71

Multiple Choice

From mid-2008 through early 2009, the value of the dollar moderately increased against major currencies, despite the fact that the American economy was suffering from a serious financial crisis. Which of the following was a reason for this phenomenon?

• A)High real interest rates in the United States compared to any other developed region in the world sparked an inflow of funds into the country.
• B)U.S. assets were characterized by a high-risk, high-return payoff which prompted foreign investors to park their funds.
• C)Foreign investors were excited at the possibility of high returns following the government bail-out of financial institutions.
• D)Foreign investors put their money in low-risk U.S. assets such as low-yielding U.S. government bonds.
• E)Foreign investors saw opportunities in the United States as the level of indebtedness had begun to reduce.

Grasp the significance of direct materials, direct labor, and factory overhead costs in product costing.

Understand the concept of conversion costs and its components.

Acknowledge the financial responsibilities and functions that fall under the chief financial officer (CFO).

Understand the classification of manufacturing costs into direct materials, direct labor, and factory overhead.

---

Definitions:

Peak Communication

The most efficient and effective level of exchanging information where all parties clearly understand each other.

Honest

The quality of being truthful, straightforward, and free from deceit or fraud in one’s actions and statements.

Open

Characterized by accessibility, willingness to receive or consider new ideas, and lack of restrictions or barriers.

Johari Window

A model that helps individuals understand their relationship with self and others by categorizing known and unknown aspects of themselves in four quadrants.