When a Country Imposes an Import Quota,its Exchange Rate

question 131

Multiple Choice

When a country imposes an import quota,its exchange rate

• A)rises because the supply of dollars in the market for foreign-currency exchange falls.
• B)falls because the supply of dollars in the market for foreign-currency exchange rises.
• C)rises because the demand for dollars in the market for foreign-currency exchange rises.
• D)falls because the demand for dollars in the market for foreign-currency exchange falls.

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Definitions:

Cash Provided

The liquidity generated by a company's operations, which may include cash from revenue as well as financing and investing activities.

Financing Activities

Activities that result in changes in the size and composition of the equity capital and borrowings of an entity.

Direct Method

A way of presenting a cash flow statement where actual cash flows from operating activities are disclosed, as opposed to estimating them indirectly through differences in non-cash items.

Cash Flows

The aggregate sum of cash inflows and outflows in a business, significantly impacting its ability to meet short-term obligations.