When a US-Based Company Holds a Receivable Denominated in a Foreign Currency

question 36

Multiple Choice

When a U.S.-based company holds a receivable denominated in a foreign currency, the U.S. company wants the foreign currency to ________ against the U.S. dollar so that the foreign currency can be converted into ________.

• A)weaken; fewer dollars
• B)weaken; more dollars
• C)strengthen; fewer dollars
• D)strengthen; more dollars

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Definitions:

Expected Value

The anticipated value for a given investment or random variable, calculated as the weighted average of all possible values.

Sample Information

Details and data gathered from a subset of a larger population, used to draw conclusions or make estimates about the larger group.

Car Audio Store

A retail business specializing in the sale of audio systems and components for automobiles.

Market Conditions

Economic factors and trends that influence the supply and demand for products and services in a market.