If Currencies Around the World Are Based on the Gold

question 123

Multiple Choice

If currencies around the world are based on the gold standard,and Japan raises the amount of gold for which the yen will trade,then holding all else constant

• A)the yen will depreciate against the dollar.
• B)the yen will appreciate against the dollar.
• C)the value of the yen relative to the dollar will stay constant.
• D)the value of U.S.exports to Japan in terms of the yen will increase.

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Definitions:

FIFO Method

A method of inventory valuation where the first items produced or purchased are the first ones to be expended or sold.

Equivalent Units

Units of production expressed in terms of fully completed units; a concept used in manufacturing to measure output in a period that factors in incomplete units.

Material

The substance or substances from which something is made or can be made, often used in reference to supplies used in manufacturing.

Conversion Costs

Costs incurred to convert raw materials into finished products, typically including labor and overhead expenses.