If the European Subsidiary of a U

question 9

Multiple Choice

If the European subsidiary of a U.S. firm has net exposed assets of euro 500,000, and the euro drops in value from $1.40/euro to $1.30/euro the U.S. firm has a translation

• A) gain of $50,000.
• B) loss of $50,000.
• C) gain of $450,000.
• D) loss of euro 450,000.

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Definitions:

Dendrites

Branch-like extensions of neurons that receive electrical messages from other nerve cells.

Efferent Nerves

Nerve fibers that carry signals away from the central nervous system towards the muscles to cause movement.

Afferent Nerves

Nerves that carry sensory information from the body's periphery towards the central nervous system.

Effectors

Organs or cells that act in response to a stimulus, executing the required response in motor functions or other activities.