A US Firm Sells Merchandise Today to a British Company for for £150,000

question 20

Multiple Choice

A U.S. firm sells merchandise today to a British company for £150,000. The current exchange rate is $1.55/£, the account is payable in three months, and the firm chooses to avoid any hedging techniques designed to reduce or eliminate the risk of changes in the exchange rate. If the exchange rate changes to $1.52/£ the U.S. firm will realize a ________ of ________.

• A) loss; $4,500
• B) gain; $4,500
• C) loss; £4,500
• D) gain; £4,500

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Definitions:

Date Picker Content Control

A user interface element that allows users to select a date from a calendar visual without needing to manually input the date.

Content Control Properties

Settings that manage the behavior, appearance, and data of content controls within document management systems or word processors.

Apply Paragraph Style

The process of assigning a specific set of formatting characteristics to a paragraph to ensure consistency in a document.

Content Control's Tag

An element in document creation software that allows for the insertion and management of content like text, dates, or lists within a template, facilitating data consistency and documentation automation.