If a Sale Made in a Foreign Subsidiary Is in the Local

question 121

Multiple Choice

If a sale made in a foreign subsidiary is in the local currency,and there is a time lag on payment,

• A) there is likely to be exchange risk.
• B) interest may be due.
• C) there is no transaction risk because the currency is local.
• D) economic risk may be present.

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Definitions:

Splitting

In nuclear magnetic resonance (NMR) spectroscopy, the division of a signal into multiple peaks due to interactions between nuclei with magnetic moments.

Relative Area

The proportion of a specific area or region relative to another, often discussed in comparing different parts of a graph or chromatographic peaks in analytical chemistry.

Coupling Constant

A parameter in nuclear magnetic resonance (NMR) spectroscopy that measures the interaction between spinning nuclei.

Aldehydic Proton

The hydrogen atom attached to the carbon of an aldehyde group, which is typically more deshielded in NMR spectroscopy compared to other hydrogen atoms.