Which of the Following Statements About U

question 5

Multiple Choice

Which of the following statements about U.S.inflation is not correct?

• A)Low inflation was viewed as a triumph of President Carter's economic policy.
• B)There were long periods in the nineteenth century during which prices fell.
• C)The U.S.public has viewed inflation rates of even 7 percent as a major economic problem.
• D)The U.S.inflation rate has varied over time,but international data show even more variation.

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Definitions:

Translation Adjustment

An accounting entry that reflects the impact of currency fluctuations in the financial statements of a company with operations in foreign currencies.

Foreign Currency

Currency used that is not the domestic currency of the country in which a transaction is being conducted.

Net Asset Balance Sheet Exposure

The risk that the value of a company's assets minus its liabilities, measured in its reporting currency, will decrease due to foreign exchange rate fluctuations.

Translation Adjustment

An adjustment made in the financial statements to account for exchange rate variations in translating operations of foreign subsidiaries into the parent company’s reporting currency.