Which of the Following Brings the Dollar Amount of the Total

question 10

Multiple Choice

Which of the following brings the dollar amount of the total liabilities and stockholders' equity of a foreign subsidiary into agreement with the dollar amount of its total assets?

• A)The foreign-currency translation adjustment
• B)The foreign-currency rate of return adjustment
• C)The foreign-currency amortization adjustment
• D)The foreign-currency hedging adjustment

---

Definitions:

Open Market Operations

The purchase and sale of government bonds by a central bank as a means to regulate the economy's money supply and adjust interest rates.

Inflation

The speed at which the overall price level of goods and services increases, leading to a decline in the currency's buying power.

Interest Rates

The cost of borrowing money or the reward for saving, usually presented as a percentage.

Bond Prices

The market price at which a bond is traded, which inversely varies with interest rates and the bond's perceived risk.