If a US Exporter Expects to Receive a Payment of £200,000 from £200,000

question 5

Multiple Choice

If a U.S. exporter expects to receive a payment of £200,000 from a London importer in two months after the products are shipped. With the current rate it would be worth $300,000. Two months later the rate changes and reduces the actual dollar avenue to $260,000. Therefore, the U.S. exporter will suffer a $40,000___________________.

• A) foreign exchange loss
• B) foreign exchange gain
• C) borrowing loss
• D) net loss

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Definitions:

Generalized Anxiety

A mental health condition characterized by persistent, excessive worry about various aspects of daily life, not tied to any specific threat.

Compulsive Anxiety

A state of mind characterized by uncontrollable, excessive worry and fear, leading to repetitive behaviors or rituals as an attempt to alleviate the anxiety.

Agoraphobia

An anxiety disorder characterized by an intense fear and avoidance of places or situations where escape might be difficult or help might not be available.

Unjustifiably Worries

No valid key-term for psychological or scientific terminology.