8. Individuals will accept the medium of exchange in return for goods and services only if they are confident that ______.
2 k/ D8 W( B; k5 R) q* LA. the inflation rate is zero
& k3 w9 l8 j/ FB. it possesses intrinsic value
- H$ C' r5 Q5 ^ eC. they can pass it on to others
. N' L" u: \; B4 c$ TD. they can exchange it for gold $ I0 P/ ? m- ?2 r5 z3 C+ z; {' v
9. When a country’s currency appreciates, the country’s goods abroad become ______ and foreign goods in that country become ______. - |* V A/ h# \- c' E
A. cheaper... more expensive
/ y, f+ p y: h" \5 [B. more expensive... cheaper ' r' a4 u- G" _& ]$ U
C. cheaper...cheaper * b/ a6 ^0 P: E: E+ e {7 b5 Z( J6 k
D. more expensive... more expensive
u! @1 c3 l7 c" I7 h10. A US company is bidding for a contract in China. Its Chinese customer asks for a performance bond. What is the most likely course of action? ______.
8 U, F1 D5 Q1 j* ?, _A. It asks its bank to issue a tender bond which can be converted into a performance bond
?- F6 L1 K3 P3 HB. It gives up its bid C. It consults its bank about issuing a standby letter of credit 7 u5 g- q6 G* p# D3 V' V( M/ R/ U
D. It asks its bank to issue a performance bond
5 ]+ }/ m, B* ?/ n11. ABC Co. Ltd. has a $3 500 account receivable from XYZ Store. On March 20, XYZ makes a partial payment of $2 100 to ABC. The journal entry made on Mdrch 20 by ABC to record this transaction includes ______. . H# h( J( m8 y& X: J
A. a debit to the cash received account of $2 100 $ n% E' X. z9 _7 m7 ~
B. a credit to the Accounts Receivable account of $2 100
: p; q; T3 a* P! mC. a debit to the Cash account of $1 400 5 V5 e7 t4 f. y/ ]
D. a debit to the Accounts Receivable account of $1 400
- P5 U4 d& J( i6 r12. Intervention in the foreign exchange market means the government ______.
2 k1 {. K: W9 a# R* m/ v# yA. restricts individuals from buying and selling foreign exchange
0 _ Q/ [3 C# z2 A) i! u& `) IB. restricts the importation of certain goods 8 Y$ T9 W! i- J m8 n+ h" K6 J
C. or central bank buys or sells foreign exchange
2 { a5 D- H, S7 N2 ED. devalues the currency in the foreign-exchange market
+ b4 b/ z9 D8 k13. Which of the following is not a form of countertrade? ______. : a& M9 a* I8 A0 }
A. Counterpurchase
8 J \2 {% B8 u( c6 qB. Buy-back C. Offset
9 X, l$ L$ a _D. Balance trade ) b* \4 C& D1 Q& p
14. A credit to a revenue account ______. 3 L% j! D2 o* ]( S1 S& u) G
A. decreases revenues
$ p F( [% n/ T2 e; c5 qB. increases equity
; u) I1 E3 j9 f! ~6 W8 B$ lC. decreases equity
7 [1 _# @7 I( w2 RD. increases assets |