A short-term speculative rise in the worldwide value of domestic currency could be moderated by a central bank decision to
A. Sell domestic currency in the foreign exchange market.
B. Buy domestic currency in the foreign exchange market.
C. Sell foreign currency in the foreign exchange market.
D. Increase domestic interest rates.
Another71.com readers get a special discounted price of $87 for a full year subscription to the software by clicking here.
The following BEC question is from the Wiley CPA Test Bank for BEC. When designing the physical layout of a data processing center, which of the following would be least likely to be a necessary control? A: Design of controls to restrict access. B: Adequate physical layout space for the operating system. C: Inclusions of […]
The following is from the Wiley CPA 2011 Test Bank Software (Online). Click here to get over 600 BEC CPA Exam practice questions for $87. Topic: Corporate Governance Which of the following forms of compensation is more likely to result in shirking by management? A: Fixed compensation. B: Base salary and bonus. C: Base […]
The following is from the Wiley CPA Review BEC Online Test Bank. Used with permission from the Publisher. Topic: Cost Accounting Morton Company’s manufacturing costs for 2008 were as follows: Direct materials: $300,000 Direct manufacturing labor: 400,000 Variable Factory overhead: 80,000 Fixed Factory overhead: 50,000 Prime costs totaled A: $300,000 B: $380,000 C: $700,000 […]
The following is from the Online Wiley CPA Software. Used with permission from the Publisher. Topic: Business Structures Which of the following is not necessary to create an express partnership? A: Execution of a written partnership agreement. B: Agreement to share ownership of the partnership. C: Intention to conduct a business for profit. D: Intention […]
You must be logged in to post a comment.
© 2021 another71. All rights reserved.
B
Really, B? Id have said A. What is the answer?
Well, if the value of the dollar went from $1 to $2, I think it would be fortuitous of them to sell the currency for a $2 profit. Buying domestic currency when it's valued double short-term is a bad investment. When the currency returns to $1, the bank will have spent twice the money. I say A.
I meant sell them for $2, making $1 profit.