Which of the Following Would Decrease the Value of the Australian

question 185

Multiple Choice

Which of the following would decrease the value of the Australian dollar in the long run?

• A) A decrease in inflation in Australia relative to other countries.
• B) A decrease in the demand for Australian goods relative to goods from other countries.
• C) An increase in Australian tariffs on foreign goods.
• D) A decrease in the supply of Australian dollars on the foreign exchange market.

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Definitions:

U.S. GAAP

The Generally Accepted Accounting Principles in the United States, a common set of accounting rules and standards for financial reporting.

IFRS

International Financial Reporting Standards, a set of accounting guidelines that provide a global framework for how public companies prepare financial statements.

Lower of Cost

An accounting principle requiring that inventory be recorded at the lower of its original cost or current market value.

Matching

An accounting principle where expenses are recorded in the period they are incurred to generate revenues.