If One Currency Decreases in Value Relative to Another Currency,this

question 135

Multiple Choice

If one currency decreases in value relative to another currency,this is known as:

• A) Currency depreciation.
• B) Absolute advantage.
• C) Protectionism.
• D) Supply restriction.

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Definitions:

Desired Balance

The optimal amount of funds an individual or business aims to maintain in an account.

Excess (Deficiency)

The amount by which actual income exceeds or falls short of the budgeted amount.

Cash Budget

A financial tool used by businesses to plan for their cash inflows and outflows over a specific period to manage liquidity.

Budgeted Disbursements

Forecasted cash outflows for a specific period, often part of a company's cash budget and crucial for managing liquidity.