Which of the Following Generates Demand for Foreign Currencies

question 38

Multiple Choice

Which of the following generates demand for foreign currencies?

• A)Expenditures by Americans traveling abroad.
• B)Exports from the United States to foreign countries.
• C)The purchase by foreigners of bonds issued by the U.S.government.
• D)Transfers of money from foreigners to relatives in the United States.

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Definitions:

Direct Labor Cost

The compensation given to workers who are directly engaged in manufacturing products or providing services.

Raw Materials

The basic materials from which products are made, used in manufacturing processes to produce finished goods.

Direct Labor Wage Rate

The amount paid per hour or unit of production to manufacturing workers who are directly involved in converting materials into finished goods.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, such as utilities, rent, and salaries for employees not directly involved in production.