Which of the Following Illustrates Non-Contractual Exchange-Rate Risk

question 8

Multiple Choice

Which of the following illustrates non-contractual exchange-rate risk?

• A)A Canadian importer will owe £50,000 and the pound is expected to appreciate.
• B)A French airplane manufacturer has suppliers in Canada and the exchange rate has been unstable.
• C)A Canadian distributor of Japanese electronic goods expects the Dollar to depreciate.
• D)A Canadian subsidiary of a German manufacturer transfers DM100,000 to the parent annually.

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Definitions:

Genetic Action

The process by which genes influence traits or behaviors.

Hormone Levels

The concentrations of hormones present in the bloodstream, which regulate various bodily functions and can affect mood, growth, and metabolism.

Development

The process of growth or progress in any dimension, such as biological, psychological, social, or economic, involving complex interplays between genetics, environment, and experience.

Conception

The process of fertilization where a sperm cell joins with an egg cell to form a zygote.