What Is the Term Used to Describe the Possibility That

question 43

Multiple Choice

What is the term used to describe the possibility that a foreign currency will decrease in U.S. dollar value over the life of an asset such as Accounts Receivable?

• A) Foreign exchange translation
• B) Foreign exchange risk
• C) Hedging
• D) Foreign currency options

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Definitions:

Fraudulent Misrepresentation

A false statement of fact made knowingly, or without belief in its truth, or recklessly, intending another party to act upon it, resulting in loss.

Monetary Compensation

Financial payment given to an individual or entity for loss, suffering, or injury as a form of restitution.

Rescission

The act of cancelling a contract and returning all involved parties to the positions they were in before the contract was made.

Innocent

Innocent refers to not being guilty of a crime or offense, or lacking knowledge of wrongdoing.