Suppose That the Real Exchange Rate Between the United States

question 18

Multiple Choice

Suppose that the real exchange rate between the United States and Kenya is defined in terms of baskets of goods.Other things the same,which of the following will increase the real exchange rate (that is increase the number of baskets of Kenyan goods a basket of U.S.goods buys) ?

• A)an increase in the number of Kenyan shillings that can be purchased with a dollar
• B)an increase in the price of U.S.goods
• C)a decrease in the price in Kenyan shillings of Kenyan goods
• D)All of the above are correct.

Comprehend the errors in recording transactions and their correction entries.

Know the role and importance of a bank reconciliation in financial control systems.

Understand the treatment of outstanding checks and deposits in transit in bank reconciliations.

Recognize how notes collected by the bank and NSF checks affect bank reconciliations.

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Definitions:

Additional Cost

The extra cost that is incurred when an economic agent decides to increase the level of an activity or purchase.

Labor Market

The marketplace in which individuals offer their labor for employment and employers seek to hire labor to fill available positions.

Resource Market

The market where resources or inputs such as labor, capital, and raw materials are bought and sold.

Rational Decision Maker

An individual or entity that makes choices that maximize benefits while minimizing costs, based on available information and logical analysis.