If a European Subsidiary of a U

question 10

Multiple Choice

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

---

Definitions:

Alopecia

A condition characterized by hair loss from some or all areas of the body, typically the scalp.

Trichotillomania

A disorder involving recurrent, irresistible urges to pull out hair from one's scalp, eyebrows, or other areas of the body, despite trying to stop.

Albinism

A genetic condition characterized by a lack of melanin pigment in the skin, hair, and eyes.

Lymph Vessels

The network of thin tubes that transport lymph fluid throughout the body, playing a crucial role in the immune system.