If the U.S. Dollar Appreciates

question 87

Multiple Choice

If the U.S. dollar appreciates,

• A) an MNC's U.S. sales will probably decrease.
• B) an MNC's exports denominated in U.S. dollars will probably increase.
• C) an MNC's interest owed on foreign funds borrowed will probably increase.
• D) an MNC's exports denominated in foreign currencies will probably increase.
• E) all of the above

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Definitions:

Fiscal Year

A one-year period that companies and governments use for financial reporting and budgeting, which may not coincide with the calendar year.

Average Number

A value found by summing all numbers in a set and then dividing by the count of those numbers, representing a central or typical value in the set.

Maintenance Crew

A team responsible for keeping buildings, machinery, or equipment in working order through routine maintenance and repair.

Rate of Return

A rise or fall in an investment's worth over a certain period, denoted as a fraction of the investment's beginning cost.