Under Which Method Does the Gain or Loss Due to Translation

question 40

Multiple Choice

Under which method does the gain or loss due to translation adjustment not affect reported cash flows,as it does with the other three translation methods?

• A)Current/noncurrent method
• B)Monetary/nonmonetary method
• C)Temporal method
• D)Current rate method

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Definitions:

Excess Reserves

The funds that commercial banks hold in their reserves over and above the regulatory requirement set by the central bank.

Reserve Ratio

The fraction of deposits that a bank is required to hold in reserve and not loan out, as mandated by central banking authorities.

Percent

A term used to describe one hundredth of a whole; a way to express fractions, amounts, or changes in quantities in terms of hundredths.

Reserve Requirement

A regulation that sets the minimum amount of reserves a bank must hold against deposits, used as a tool to control banking stability and money supply.