If One Country Is Hit with a Shock That Increases

question 20

Multiple Choice

If one country is hit with a shock that increases the value of its currency and causes its net exports to decline and the net exports and income of other countries to rise, then the business cycle is being transmitted internationally through _____effect.

• A)a trade
• B)an interest-rate
• C)an exchange-rate
• D)an expected-inflation

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Definitions:

Condensed Segment Data

A summarized presentation of financial information by different segments within a business.

Prescriptive

An approach or method that provides specific instructions, rules, or recommendations to achieve a particular outcome.

Disclosure

The act of making new or important information known, especially about financial operations or conditions.

AASB 114

Australian Accounting Standards Board ruling 114, which sets guidelines for segment reporting by financial entities.