If the Parent Firm and All Subsidiaries Denominate All Exposed

question 50

Multiple Choice

If the parent firm and all subsidiaries denominate all exposed assets and liabilities in the parent's reporting currency this will ________ exposure but each subsidiary would have ________ exposure.

• A) maximize translation; no transaction
• B) eliminate translation; transaction
• C) maximize transaction; no translation
• D) eliminate transaction; translation

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Definitions:

CO2

Carbon dioxide, a colorless gas with a slightly acidic taste and odor, a byproduct of respiration and an important greenhouse gas in Earth's atmosphere.

Chemoautotroph

Organism that obtains energy from inorganic compounds and synthesizes organic compounds from inorganic raw materials; includes some bacteria and many archaea. Compare with photoautotroph, photoheterotroph, and chemoheterotroph.

Nitrogen-Fixing Bacteria

are bacteria capable of transforming atmospheric nitrogen into fixed nitrogen, making it accessible to plants for growth.

Porphyrin Ring

A large, ring-shaped molecule found in many biologically important molecules, such as heme, vital for carrying oxygen in blood.