If the Exchange Rate Changes So That More Swiss Francs

question 125

Multiple Choice

If the exchange rate changes so that more Swiss francs are required to buy a dollar, then:

• A)the Swiss franc has appreciated in value.
• B)Canadians will buy more Swiss goods and services.
• C)more Canadian goods and services will be demanded by the Swiss.
• D)the dollar has depreciated in value.

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Definitions:

Sales Budget

An estimate of the expected sales revenue for a certain period of time, often used as a plan for business operations and resource allocation.

Capital Expenditures Budget

A budget that outlines projected spending on fixed assets over a period, including purchases of property, equipment, and other long-term investments.

Production Budget

A financial plan that estimates the costs associated with the production process, including materials, labor, and overhead, within a specific period.

Direct Materials Purchases Budget

A budget that estimates the quantities of direct materials to be purchased to support budgeted production and desired inventory levels.