Which of the Following Statements Is False

question 67

Multiple Choice

Which of the following statements is false?

• A)The Board of Governors of the Federal Reserve System authorizes member banks to accept drafts that arise in the course of certain types of international transactions.
• B)Multinational corporations may engage in foreign exchange management for speculative purposes, as well as for defensive purposes.
• C)Arbitrage in the foreign exchange market is the simultaneous purchasing of commodities or securities in one market and selling them in another where the price is higher.
• D)All the above statements are correct.

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Definitions:

Monetary Unit Assumption

An accounting principle that assumes transactions and events can be expressed in stable units of money, facilitating their comparison and measurement.

Property Tax

Property tax is a levy on property that the owner is required to pay to the government in which the property is situated.

Selling Price

The amount for which a product or service is sold to customers, determining the revenue generated from sales.

Cost Principle

Accounting principle that requires assets, services, and goods to be recorded at their original cost rather than their current market value.