The Euro Was Introduced as a Physical Currency in January

question 93

Multiple Choice

The euro was introduced as a physical currency in January 2002 at an exchange rate of $1.16/€.In early 2014,the euro traded as high as $1.40/euro.You would observe that by early 2014,the euro had ________ against the dollar.

• A)depreciated
• B)appreciated
• C)fallen
• D)lost its purchasing power

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Definitions:

Indirect Method

A technique used in cash flow analysis to adjust net income by changes in non-cash accounts to arrive at cash provided by operating activities.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was acquired, used to reduce the asset's book value over time.

Intangible Assets

Non-physical assets that provide economic benefits to a company, such as patents, trademarks, goodwill, and copyrights.

Issuance of Bond

The process through which a bond is created and sold to investors, thus raising capital for the issuer.