Which of the Following Is Not True About Exchange Rates?​

question 38

Multiple Choice

Which of the following is not true about exchange rates?​

• A)​A strengthening currency is evidenced by an increase in the directly quoted exchange rate.
• B)​Importers benefit from a strong dollar.
• C)​If one can buy 1 FC for $.50, $1.00 will buy 2 FC.
• D)​The points in an exchange rate, or broker's commission, are influenced by several factors, including supply and demand for currency.

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Definitions:

Normal Cost

The standard or usual expense associated with manufacturing a product, including direct labor, direct materials, and manufacturing overhead under normal operating conditions.

Portable Computer

A computer designed to be easily moved from one place to another, including laptops, notebooks, and other mobile computing devices.

Outside Supplier

A third-party entity that provides goods or services to a company, which are not produced in-house.

Production Costs

The total expenses incurred in the manufacture of a product, including direct materials, direct labor, and manufacturing overhead.