If the U.S.dollar Appreciates,it Implies That

question 142

Multiple Choice

If the U.S.dollar appreciates,it implies that:

• A)the value of the U.S.dollar has decreased.
• B)the value of foreign currency in terms of U.S.dollars has increased.
• C)fewer U.S.dollars are required to purchase foreign exchange.
• D)more U.S.dollars are required to purchase foreign exchange.
• E)exports will rise immediately.

---

Definitions:

Equity Method Investments

An accounting technique used to record investments in which the investor holds significant influence over the investee, usually recognized when owning 20-50% of the voting stock.

Cash Dividends

Earnings distributed to shareholders in the form of cash, reflecting a company's profitability and its decision to return a portion of profits back to investors.

Dividend Revenue

Income received from owning shares in a company, which represents a distribution of the company's earnings.

Foreign Exchange Gain

A financial benefit that occurs when the value of foreign currencies increases against the domestic currency in which a company holds foreign currency assets or earnings.