If a Foreign Exchange Transaction Calls for Payment in the Importer's

question 73

True/False

If a foreign exchange transaction calls for payment in the importer's currency, the exporter has the foreign exchange risk.

---

Definitions:

Ordinary Annuity

A series of equal payments made at regular intervals over a specified period of time.

Future Value

The value of a current asset at a specified future date, based on an expected rate of growth or return.

Annuity Due

An annuity for which the payment is due immediately at the beginning of each period, rather than at the end.

Ordinary Annuities

Identical financial amounts distributed at the termination of back-to-back periods, within a set period.