Foreign Exchange Means

question 44

Multiple Choice

Foreign exchange means

• A)changing dollars into foreign currency
• B)domestic currency held to finance international trade
• C)foreign currency
• D)trade between governments
• E)trade between individuals in different countries

Grasp the accounting implications of mergers and acquisitions including the treatment of goodwill.

Recognize the consolidation process and its effects on the balance sheet and income statement.

Understand the requirements and effects of depreciating and amortizing the assets of a subsidiary in consolidation.

Understand the principles of effective communication and media relations in public administration.

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Definitions:

Foreign Exchange Market

A global marketplace for exchanging national currencies against one another.

Trade Deficit

A situation where a country's imports exceed its exports, resulting in a negative balance of trade.

Managed-Floating System

A foreign exchange policy whereby a country's central bank intervenes to control its currency value within certain limits, while still allowing the currency value to fluctuate in response to market forces.