An Exchange Rate Is

question 276

Multiple Choice

An exchange rate is:

• A) a yearly summary of all the economic transactions between residents of one country and residents of the rest of the world.
• B) the sum of the balance of trade,net income on capital held abroad,and net transfer payments.
• C) the price of one currency in terms of another currency.
• D) a currency whose value is not pegged but governments will intervene extensively in the market to keep the value within a certain range.

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Definitions:

Salaries Payable

A liability account that records the amount of salaries owed to employees but not yet paid.

Accrued

Income earned or expenses incurred before cash has been exchanged, often recognized in the accounting process.

Insurance Policy

A legal contract between an insurer and the insured, outlining the terms, coverages, premiums, and conditions under which the insurer agrees to compensate the insured.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate revenues and expenses to the period in which they actually occurred.