A US Company Sells Merchandise to a Foreign Company Denominated in in the Foreign

question 16

Multiple Choice

A U.S. company sells merchandise to a foreign company denominated in the foreign currency. Which of the following statements is true?

• A) If the foreign currency appreciates, a foreign exchange gain will result.
• B) If the foreign currency depreciates, a foreign exchange gain will result.
• C) No foreign exchange gain or loss will result.
• D) If the foreign currency appreciates, a foreign exchange loss will result.
• E) Any gain or loss will be included in comprehensive income.

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Definitions:

Cardiovascular Disease

A general term for conditions affecting the heart and blood vessels, such as coronary artery disease, heart attack, and stroke.

Gum Disease

A set of inflammatory conditions affecting the tissues surrounding the teeth, which can lead to loss of teeth if untreated.

Diabetes

A chronic disease that affects the way the body processes blood sugar (glucose), characterized by high blood sugar levels over a prolonged period.

Mortality Rate

A measure of the frequency of occurrence of death in a defined population during a specified interval.