You Checked the €/$ Exchange Rate a Week Ago and You

question 71

Multiple Choice

You checked the €/$ exchange rate a week ago and you found that one Dollar cost you €0.8214.When you checked the €/$ exchange rate again yesterday one dollar was trading at €0.8026.By how much did the value of the Dollar appreciate (depreciate) ?

• A) appreciated by 3.56%
• B) depreciated by 3.56%
• C) appreciated by 2.35%
• D) depreciated by 2.35%

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Definitions:

Economic Benefit

The advantage or gain received from a financial transaction or situation, which may have tax implications or influence fiscal decisions.

Nontaxable Return of Capital

A payment received from an investment that is not taxed because it is considered a portion of the original investment's cost being returned to the investor.

Retained Earnings

The portion of net income left over for the business after it has paid out dividends to its shareholders.

Earnings and Profits

A measure of a corporation’s ability to pay dividends to shareholders, not necessarily equal to net income.