Devaluation of a Currency Results in All of the Following

question 65

Multiple Choice

Devaluation of a currency results in all of the following EXCEPT ________.

• A)lowering profit margins for domestic companies
• B)lowering the price of a country's exports
• C)increasing the price of a country's imports
• D)reducing consumers' buying power

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Definitions:

Operating Expenses

Costs associated with running the day-to-day operations of a business which are necessary to keep the business functioning, excluding the cost of goods sold.

Gross Profit

The distinction between the income from sales and the expense of goods sold prior to subtracting costs for overheads, wages, taxes, and interest.

Cost of Goods Sold

This is an accounting term that refers to the direct costs attributable to the production of the goods sold by a company.

Income from Operations

Revenue from a company's everyday business activities minus the costs and expenses associated with those operations.