Under a System of Fixed Exchange Rates,excess Demand by Germans

question 11

Multiple Choice

Under a system of fixed exchange rates,excess demand by Germans for the Swiss franc represents a potential

• A)German balance-of-payments surplus with Switzerland.
• B)German balance-of-payments deficit with Switzerland.
• C)German trade surplus with Switzerland.
• D)Swiss trade surplus with Germany.

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Definitions:

Adjusted Trial Balance

A listing of all company accounts that will appear in the financial statements after adjustments have been made for journal entries.

Current Liability

An obligation due to be paid within a year, including accounts payable, short-term loans, and other similar debts.

Notes Payable

Financial obligations represented by promissory notes, where the borrower agrees to pay back a specified sum of money on demand or at a determined future date.

Prepaid Expenses

Expenses paid in advance by a company for goods or services to be received in the future.