Which of the Following Decreases the Price of the Dollar

question 147

Multiple Choice

Which of the following decreases the price of the dollar relative to the British pound?

• A) a decrease in the supply of dollars
• B) a decrease in the demand for pounds
• C) an increase in the demand for dollars
• D) an increase in the supply of dollars

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Definitions:

Forego Discount

Choosing not to take advantage of early payment discounts offered by suppliers or creditors.

Costly Trade Credit

Refers to the high cost associated with the short-term financing obtained by buyers from suppliers when they choose to delay payment.

Gross Purchases

The total amount of all purchases made by a business before deducting any discounts, returns, or allowances.

Credit Terms

Credit terms are the payments conditions set by sellers for goods and services, including the period provided to the buyer to settle the owed amount.