The Following Table Summarizes the Facts of Five Independent Cases

question 95

Essay

The following table summarizes the facts of five independent cases (labeled a through e) of American companies engaging in credit transactions with foreign corporations while the foreign exchange rate is fluctuating:

Instructions
After evaluating the information about each case, fill the blank space that has been left in one of the four columns denoted by a yellow color. The content of each column and the word or words that you should enter in the blank spaces are described below:
Column 1 indicates the type of credit transaction in which the American company engaged with the foreign corporations. The answer entered in this column should be either "Sales" or "Purchases."
Column 2 indicates the currency in which the invoice price is stated. The answer may be either "U.S. dollars" or "Foreign currency."
Column 3 indicates the direction in which the foreign currency exchange rate has moved between the date of the credit transaction and the date of settlement. The answer in this column may be either "Rising" or "Falling."
Column 4 indicates the effect of the exchange rate fluctuation upon the income of the American company. The answers entered in this column are to be selected from the following: "Gain," "Loss," or "No effect."

---

Definitions:

Energy Quality

Energy Quality refers to the ability of a form of energy to perform work; higher quality energies are more easily used to perform work effectively.

Electricity

The set of physical phenomena associated with the presence and motion of electric charge, used as a form of energy.

Ionizing Radiation

Radiation with enough energy to remove tightly bound electrons from atoms, thus creating ions, and can lead to chemical changes and damage biological tissues.

Mutation

describes a change in the DNA sequence within a gene or chromosome of an organism leading to the creation of a new character or trait not found in the parental type.