Which of the Following Would Demand Euros in the Foreign

question 80

Multiple Choice

Which of the following would demand euros in the foreign exchange market?
I. Americans who want to buy U.S. goods, services, and assets
II. Americans who want to buy European goods, services, and assets
III. Europeans who want to buy U.S. goods, services, and assets

• A)I only
• B)II only
• C)III only
• D)I, II, and III

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Definitions:

Inventory

The total amount of goods and materials held by a company for the purpose of sale or production.

Income Taxes

Taxes that individuals or entities pay on their income to federal, state, or local tax authorities.

Unrealized Intercompany Profits

Profits that arise from transactions between entities within the same group, which are not yet realized through sales to external parties.

Matching Principle

An accounting principle that expenses should be recorded in the period in which they are incurred to generate revenues, ensuring that financial statements accurately reflect a company's performance.