Which of the Following Would Cause Price to Decrease

question 59

Multiple Choice

Which of the following would cause price to decrease?

• A)a decrease in supply
• B)an increase in demand
• C)a surplus of the good
• D)a shortage of the good

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Definitions:

Foreign Currency Put Option

A financial derivative that gives the holder the right, but not the obligation, to sell a specific amount of foreign currency at a set price within a specified time period.

U.S. GAAP

United States Generally Accepted Accounting Principles, a framework of accounting standards, guidelines, and procedures used in the United States.

Foreign Exchange Risk

The potential for financial losses due to changes in exchange rates affecting the value of foreign-currency-denominated assets and liabilities.

Foreign Exchange Gain

Foreign Exchange Gain arises when a currency transaction results in receiving or paying fewer units of the home currency than initially anticipated due to exchange rate movements.