If the European Subsidiary of a U

question 28

Multiple Choice

If the European subsidiary of a U.S. firm has net exposed assets of €750,000, and the euro drops in value from $1.30/euro to $1.20/€ the U.S. firm has a translation:

• A) gain of $75,000.
• B) loss of $75,000.
• C) gain of $625,000.
• D) loss of €576,923.

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Definitions:

Amino Acid

Organic molecules that serve as the building blocks of proteins, containing both an amino group and a carboxyl group.

Coding Region

A portion of a gene's DNA or RNA that codes for protein.

AUG

The codon in messenger RNA that signals the start of translation and the amino acid methionine.

UAA

One of the three stop codons in the genetic code that signals the end of protein synthesis.