If the European Subsidiary of a U

question 38

Multiple Choice

If the European subsidiary of a U.S. firm has net exposed assets of €200,000, and the euro increases in value from $1.22/€ to $1.26/€ the U.S. firm has a translation:

• A) gain of $8,000.
• B) loss of $8,000.
• C) gain of $252,000.
• D) loss of €252,000.

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Definitions:

Maslow

An American psychologist who created the hierarchy of needs, a theory in psychology concerning human motivation based on prioritized needs.

Spontaneous

Occurring without apparent external cause; impromptu or unplanned.

Reproductive Payoffs

Benefits or advantages obtained through reproducing, often in the context of evolutionary biology, referring to the success of passing genes to the next generation.

Evolutionary

Pertains to the gradual process of biological change and development over successive generations.