If You Go to the Bank and Notice That a Dollar

question 10

Multiple Choice

If you go to the bank and notice that a dollar buys more Japanese yen than it used to,then the dollar has

• A)appreciated.Other things the same,the appreciation would make Americans less likely to travel to Japan.
• B)appreciated.Other things the same,the appreciation would make Americans more likely to travel to Japan.
• C)depreciated.Other things the same,the depreciation would make Americans less likely to travel to Japan.
• D)depreciated.Other things the same,the depreciation would make Americans more likely to travel to Japan.

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Definitions:

Business Judgment Rule

A legal principle that protects corporate directors and officers from liability for decisions made in good faith and in the best interests of the corporation, even if the decisions are ultimately unsuccessful.

Insolvent

A financial state in which an individual or entity cannot meet its debt obligations as they come due because its liabilities exceed its assets.

Stock Warrants

Securities that give the holder the right to purchase company stock at a specified price before a certain date.

Redeemed

Refers to the act of repaying or buying back something, such as a financial security or a reputation.