All of the Following Is Likely to Increase the Supply

question 115

Multiple Choice

All of the following is likely to increase the supply of U.S. dollars in the forex market except?

• A) If U.S. interest rates are low relative to foreign interest rates
• B) If investors' confidence in foreign economies increases
• C) If U.S. consumers prefer foreign goods to U.S. goods
• D) If investors' confidence in US investments increases.

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Definitions:

Residual Income

The net income an investment generates above the minimum rate of return expected by managers or investors.

Imputed Interest Charge

The interest payment that tax authorities assume on a loan, even if no interest payment exists.

Responsibility Centres

Units or departments within an organization, each with specific responsibilities and performance metrics to manage financial outcomes.

Imputed Interest Rate

The estimated rate of interest, often applied in situations where no actual interest rate is specified in a financial transaction.