Trading in Foreign Currencies Has an Effect on World Trade

question 69

Multiple Choice

Trading in foreign currencies has an effect on world trade. For example, a rise in the value of the local currency due to daily flows vis-à-vis other currencies makes
Exports:

• A) less expensive.
• B) more expensive.
• C) come under government control.
• D) parallel with imports.
• E) be banned.

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Definitions:

Tax Liability

The total amount of tax owed to federal, state, or local tax authorities for a given period.

Form 4070

A tax form used by employees in the United States to report tips received to their employer.

Tax Withholding

The portion of an employee's wages that is not included in their paycheck because it is sent directly to the federal, state, or local tax authorities as partial payment of income tax.

FICA Taxes

Taxes collected under the Federal Insurance Contributions Act to fund Social Security and Medicare, required deductions from workers' paychecks.