A US Firm Sells Merchandise Today to a British Company for for £150,000

question 20

Multiple Choice

A U.S. firm sells merchandise today to a British company for £150,000. The current exchange rate is $1.55/£, the account is payable in three months, and the firm chooses to avoid any hedging techniques designed to reduce or eliminate the risk of changes in the exchange rate. If the exchange rate changes to $1.52/£ the U.S. firm will realize a ________ of ________.

• A) loss; $4,500
• B) gain; $4,500
• C) loss; £4,500
• D) gain; £4,500

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Definitions:

Psychotherapy

A therapeutic treatment involving psychological techniques, designed to assist individuals in overcoming difficulties or achieving personal growth.

Depressed Patients

Individuals diagnosed with depression, a mental health disorder characterized by persistently depressed mood or loss of interest in activities, causing significant impairment in daily life.

Control Group

A group in an experiment that does not receive the treatment or intervention being tested, used as a comparison to measure the effect of the treatment.

Meta-Analysis

A statistical technique for combining the findings from independent studies to identify trends or common effects.