What Is the Cause of Balance Sheet Exposure

question 2

Multiple Choice

What is the cause of balance sheet exposure?

• A)converting subsidiary account balances to balances denominated in the parent company's currency at historical exchange rates
• B)completing international transactions in currency other than the currency of the home company
• C)translating subsidiary account balances to amounts denominated in the parent company's currency
• D)none of the above

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Definitions:

Color Spectrum

The range of all possible light frequencies, visible to the human eye as different colors, from violet through to red.

Muscular Movements

The actions resulting from the contraction and relaxation of muscles which enable physical motion in organisms.

Linguistic Divergence

The development of different languages from a single ancestral language.

Tonal Language

A language in which the pitch or tone in which a word is spoken can change its meaning, making tone an essential part of the language's phonology.