A US Company Sells Merchandise to a Foreign Company Denominated in in U.S

question 26

Multiple Choice

A U.S. company sells merchandise to a foreign company denominated in U.S. dollars. Which of the following statements is true?

• A) If the foreign currency appreciates, a foreign exchange gain will result.
• B) If the foreign currency depreciates, a foreign exchange gain will result.
• C) No foreign exchange gain or loss will result.
• D) If the foreign currency appreciates, a foreign exchange loss will result.
• E) If the foreign currency depreciates, a foreign exchange loss will result.

---

Definitions:

Stereotypes

Widely held but fixed and oversimplified image or idea of a particular type of person or thing.

Positive Assumptions

The concept of maintaining an optimistic outlook and expecting good outcomes, often leading to positive behavior and attitudes towards life and challenges.

Negative Assumptions

Cognitive biases or beliefs that lead an individual to view situations or outcomes more pessimistically, potentially contributing to anxiety and depression.