An Example of a Normative Statement Is

question 102

Multiple Choice

An example of a normative statement is:

• A) The rate of unemployment is 4 percent.
• B) A high rate of economic growth is good for the country.
• C) The federal government spends half of its budget on national defense.
• D) People with health insurance tend to spend more on health care than those who are uninsured.

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Definitions:

Exchange Gains

arise from holding foreign currencies and result from favorable changes in exchange rates, leading to an increase in the domestic currency value of the foreign currencies held.

Foreign Currency

Currency used in a country other than one's own, implying the need for exchange rate conversion in international transactions or financial reports.

Exchange Rates

The rate at which one currency can be exchanged for another, affecting how international transactions are recorded in financial statements.

Accounts Payable

The amounts a company owes because it purchased goods or services on credit from a supplier or vendor.